Q2 2023 Atour Lifestyle Holdings Ltd Earnings Call
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Operator 2: Ladies and gentlemen, thank you for standing by, and welcome to Atour Lifestyle Holdings Q2 2023 Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be question and answer session. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Allison Zhang, Director of Investor Relations. Please go ahead, ma'am.
Speaker 2: Ladies and gentlemen, thank you for standing by and welcome to Auteur Lifestyle Holding's second quarter, 2023, earnings conference call.
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Speaker 2: At this time, all participants are in listen-only mode. For the speaker's presentation, there will be question and answer session.
Speaker 2: 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. Thank you, operator. Good morning and good evening, everyone. Welcome to our second quarter 2023 earnings call. Joining us today are our founder, chairman, and CEO , Mr. Wang Haijin, and our co-chief financial officers, Mr. Wang Shodong and Mr. Wu Jianfeng. Before we continue, please be aware that today's discussion will include four main topics that
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Allison Zhang: Thank you, operator. Good morning, and good evening, everyone. Welcome to our Q2 2023 Earnings Call. Joining us today are our founder, chairman, and CEO, Mr. Haijun Wang, and our Co-Chief Financial Officers, Mr. Shoudong Wang and Mr. Jianfeng Wu. 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.
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The demand in summer this year was very strong. The summer traffic started earlier when compared to previous years. Also, the increase in traffic this year was clearly visible even in the first week of July , while in previous years those were more of a trend of gradual growth.
In July , our ADR had exceeded RMB 500,000 and our OCC exceeded 84%, both of which were monthly all-time highs.
Speaker 2: our comments today solely for comparison purposes. For a clear understanding of these measures and a reconciliation of gaps in non- GAAP financial results, please refer to the earnings release issued earlier today.
And the red part rebounded 122% compared to the same period of 2019. This overall increase in both our ADR and OCC demonstrates our capability to maintain long-term, sustainable and high-quality growth.
Speaker 2: Furthermore, a webcast replay of this conference call will be available on our website at ir.yageu.com.
Allison Zhang: 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.
Speaker 2: Now I will turn the call over to Mr. Wang, our CEO .
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[Company Representative] (Atour Lifestyle Holdings): Thank you, Allison. Hello everyone, and thank you for joining Atour's Q2 2023 earnings call today. We are thrilled to report another strong Q2, benefiting from the robust ongoing recovery trend since the beginning of this year. During Q2, we achieved remarkable growth and breakthroughs in both our hotel and retail businesses. Our passion for progress and a dedication to providing customers with exceptional experiences continued to differentiate Atour and magnify our competitive advantages, further enhancing our brand awareness and influence. As we look ahead to 2023, we are confident that our core value proposition and commitment to establishing the Chinese experience as the industry benchmark will continue to drive our sustainable growth. We are steadily executing a plan to grow our portfolio to 2,000 premium hotels nationwide by 2025, which will propel further prosperity across our business.
Speaker 4: Thank you, Allison. Hello, everyone, and thank you for joining Atwar's second quarter 2023 earnings call today.
Speaker 3: We hope you will enjoy this video. We hope you will enjoy it. Please subscribe to our channel.
Speaker 3: Thank you for your attention.
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Speaker 3: Thank you for your attention.
Thank you. Let's have our next question, please.
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Thank you. Our next question comes from the line of Ronald Leung from Bank of America. Please ask your question, Ronald.
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Speaker 4: We have thrilled to report another strong quarter, benefiting from the robust ongoing recovery trend since the beginning of this year.
Speaker 4: During the second quarter, we achieved the remarkable growth and breakthroughs in both our hotel and retail businesses.
I will ask my question in English. Management just mentioned that the RAPA guidance for fiscal year-transfer has been uplifted to 100 years.
Speaker 4: Our passion for progress and dedication to providing customers with exceptional experiences continued to differentiate a torque and magnify our competitive advantages. Further enhancing our brand awareness and influence.
13 to 117 percent may ask what is the latest expectation for the full year revenue and profit. Thank you very much
Speaker 4: As we look ahead to 2023, we are confident that our core value proposition and commitment to establishing the Chinese experience as the industry benchmark will continue to drive our sustainable growth.
Thank you, Charlie.
Thank you very much for all of you. Just now we set that our full year-of recovery is expected to reach 113% to 117%.
Speaker 4: Additionally, we are steadily executing a plan to grow our portfolio to 2000 premium hotels nationwide by 2025, which will propel further prosperity across our business.
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Speaker 4: Now I would like to discuss our performance in detail across our business lines.
[Company Representative] (Atour Lifestyle Holdings): Now, I would like to discuss our performance in detail across our business lines. Our RevPAR recovery reached 115% of the same period in 2019, with 120%, 108%, and 117% for Q1, Q2, and Q3 respectively. Among them, ADR and OCC both exceeded the same period in 2019 this quarter. Our mature stores are still performing well. In Q2, the recovery rate of RevPAR for mature hotels in operation for over 18 months was 114% of the same period in 2019.
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And in terms of revenue, we expect a YOY growth, year-over-year growth of 72% to 76%, of which retail revenues are expected to be able to reach RMB 6.5 million yen.
of revenue, we expect a Y-O-Y growth year over year growth of 72% to 76% of which retail revenues are expected to be able to reach RMB 6.500 million to 700 million.
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With our continued expansion of the hotel network, the gradual release of our scale effects, and the continuous development of our retail business, we expect profitability to continue to improve.
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Thank you. Let's have next question, please.
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Haijun Wang: 与集团整体表现基本一致，体现了我们产品更长的生命周期，以及更持久的市场竞争力。
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Speaker 4: Let's begin with our hotel business.
Speaker 4: In the second quarter, to continue to recovery in both business and the leisure travels stimulated a rapid increase in accommodation demand.
[Company Representative] (Atour Lifestyle Holdings): Let's begin with our hotel business. In Q2, the continued recovery in both business and leisure travels stimulated a rapid increase in accommodation demand. Leveraging our optimized customer channel and strong operational capabilities, we achieved a robust growth in our hotel business during the quarter. Our RevPAR recovered to 115% of 2019's level, with April, May, and June reaching 120%, 108%, and 117%, respectively. Both ADR and OCC fully recovered and continued to surpass 2019's level this quarter. Furthermore, our mature hotels in operation for more than 18 months continued to outperform, with same hotel RevPAR recovering to 114% of 2019's level in Q2. This was largely in line with the overall performance of our hotel business, illustrating our products' enduring competitiveness over a longer life cycle compared with that of the broader industry.
Speaker 4: leveraging our optimized customer channel and strong operational capabilities. We achieve the robust growth in our hotel business during the quarter.
Speaker 4: Our rough part recovered to 115% of 2019's level with April , May, and June reaching 120%, 48% and 117% respectively. Both ADR and OCC fully recovered.
year-to-date extension. So you're going to adjust your full year opening pocket and also we saw very encouraging improvement in the new science in the first house. So any guidance for the second half? Thank you.
Speaker 4: and continued to surpass 2019's level this quarter. Furthermore, our Motorola hotels in operation for more than 18 months continued to outperform with same hotel ref part recovering to 114% of 2019's level in the second quarter.
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Speaker 4: This was largely in line with the overall performance of our hotel business illustrating our products enduring competitiveness over a longer life cycle compared with that of the broader industry.
Thank you very much, Lydia, for your question. Our new hotel openings in the first quarter this year was affected by last year's epidemic and the Spring Festival holiday.
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We opened 70 new hotels in the second quarter, showing clear acceleration when compared with the first quarter. In the second half of the year, we will continue to maintain the rhythm of active new hotel openings, maintaining the annual opening target of 280.
Haijun Wang: 温暖、适度、从容的住宿体验，为亚朵赢得了商务旅客的广泛认可。一直以来，他们都是我们最坚实的用户基础。同时，我们很高兴地看到，亚朵安心舒适的住宿体验，也不断吸引着更多休闲旅客的关注和赞誉。近期暑期需求的激增，也为我们RevPAR的持续提升增添了动力。7月份我们的ADR突破了500元，入住率超过84%，均创下月度的历史新高。RevPAR与2019年同期相比，恢复度达到122%，ADR和OCC全面提升。这也展现了我们长期可持续的高质量增长的能力。我们预计第三季度酒店的经营表现将再创佳绩。
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In first quarter this year we signed 94 projects and in our second quarter we signed a record high of more than 180 projects.
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The rapid growth in signings reflected the restoration of the franchisees' confidence in us and also their recognition of the tour's three high strategies, namely high quality, high value, and high efficiency as well as our operational model.
Speaker 4: Thanks to our signature experience combining warmth, comfort and ease, we garnered wide recognition from business travelers who have always been highly engaged to with the tour.
[Company Representative] (Atour Lifestyle Holdings): Thanks to our signature experience combining warmth, comfort and ease, we garnered wide recognition from business travelers, who have always been highly engaged with Atour. Meanwhile, we were pleased to see that our exceptional experience continues to attract the attention and the praise of more leisure travelers. In July, our ADR exceeded RMB 500, and OCC surpassed 84%, reaching a monthly all-time record high and together driving RevPAR up to 122% of its level in the same period of 2019. The comprehensive recovery in room rate and occupancy further underpins our ability to drive high-quality, sustainable growth over the long run, and we are confident of delivering strong results in the upcoming Q3.
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Speaker 4: Meanwhile, we were pleased to see that our exceptional experience continues to attract the attention and the price of more leisure travelers.
Speaker 4: In July , our ADR exceeded RMB 500, and OCC surpassed the 84%. I'm switching a monthly all-time record high and together driving revs are up to 122% of its level in the same period of 2019.
We expect the signings to continue to perform well in the second half of the year, while we would strive for better quality on the basis of the first half year's growing trend. This year, our pipeline can provide a solid foundation for our goal of having 2,000 premium hotels by 2025. Thanks, Lydia.
Speaker 4: The company has recovered in room rate and occupancy further underpins our ability to drive high quality, sustainable growth over the long run. And we are confident of delivering strong results in the upcoming third quarter.
Thank you. Let's invite our next question.
Thank you, let's invite our next question. Thank you.
Our next question comes from Ji-Wei Liu from Citix. Please ask your question Ji-Wei.
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Haijun Wang: 随着市场需求趋势向好，加盟商信心持续回暖，我们在网络扩张方面也取得了扎实的进展。二季度新开业70家，签约超过180家，创下了季度的历史新高。截止6月30日，我们管道内待开发的酒店一共是523家，同比增长超过50%，为亚朵的2000好店奠定了坚实的基础。
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Speaker 4: We also made solid progress with respect to network expansion during the second quarter as market demand trended positively, enhancing franchisees confidence and encouraging them to engage more deeply with us.
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[Company Representative] (Atour Lifestyle Holdings): We also made solid progress with respect to network expansion during Q2 as market demand trended positively, enhancing franchisees' confidence and encouraging them to engage more deeply with us. During the quarter, we celebrated 17 new openings and signed a quarterly record high of over 180 new hotels. As of 30 June, we had 523 hotels in our pipeline, representing a year-over-year increase of over 50% and forming a solid foundation to support our midterm goal of having 2,000 premium hotels by 2025.
I repeat my question. Could you tell us more about a tour line three point award such as the Brampton Visioning and the one page in the main school hotel industry? Besides, can you share the performance of those stores after opening? Thanks. Okay, I see you read it. China is a very large business. RUR has a very large business. We have a very large business. We have a very large business. This event is called beam LIKE interests. The. Official community of China and China,
Speaker 4: During the quarter, we celebrated 17 new openings and signed a quarterly record high of over 180 new hotels.
Speaker 4: As of June 30th, we had 523 hotels in our pipeline representing a year-over-year increase of over 50% and forming a solid foundation to support our midterm goal of having 2,000 premium hotels by 2025.
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Haijun Wang: 产品层面，我们在今年2月份对中端品牌轻居进行了迭代升级，推出了轻居3.0版本，主要面向追求高品质体验的年轻的商旅客人。凭借着时尚质感、潮流的设计美学、差异化的市场定位和颇具竞争力的投资回报，轻居3.0推出后广受加盟商欢迎。今年二季度，我们共签约30个轻居3.0的项目，签约占比超过了15%。我们的轻居3.0的新产品已经于6月底陆续开业，首批门店开业后迅速获得年轻用户的青睐，经营表现快速爬坡，在中端酒店品牌中实现了全面突破。轻居3.0对年轻人审美偏好和优质体验的精准聚焦，使轻居更具有品牌辨识度，更富有精神内核，为新世代用高端酒店品牌的全新体验。我们相信强大的产品竞争力和市场的广泛认可，将助力轻居成为亚朵集团旗下第二个千店规模的品牌。
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February 22nd and is our group's mid-scale brand uniquely catering to young urban business travelers.
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We launched the Tour Light 3.0 at this time mainly due to two great opportunities we saw. One was that the significant mismatch between the existing hotel products in the mid-scale market and the customer demand.
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As we saw, the young business travelers had got increasing demand for high quality accommodation experiences. And the other was the opportunity to upgrade those properties in the core business districts.
There will be more properties in that kind of hot areas suitable for a tour light in the future.
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Speaker 4: With respect to our hotel product offerings, we initiated an upgrade plan for our mid-scale brand and launched the A tour, like 3.0 version, in February this year.
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[Company Representative] (Atour Lifestyle Holdings): With respect to our hotel product offerings, we initiated an upgrade plan for our midscale brand and launched the Atour Light 3.0 version in February this year. Atour Light 3.0 is uniquely positioned to cater to young urban business travelers who seek quality services and exceptional experiences. With the stylish, fashionable, and trendy design, as well as its differentiated market positioning and competitive investment return, Atour Light 3.0 attracted franchisees recognition shortly after its launch. We signed 30 Atour Light 3.0 projects in Q2, accounting for over 15% of the quarter's total signings. Following the gradual openings of our first batch of Atour Light 3.0 hotels since late June, the hotel brand made a comprehensive breakthrough across the midscale market as they quickly gained popularity among young customers and realized a rapid operational growth.
Speaker 4: A tour light 3.0 is uniquely positioned to cater to young urban business travelers who seek quality services and exceptional experiences.
Our Tour Light 3.0 product, with its fashionable, stylish and trendy design and the quality service experience up to a Tour standard, has won a good user reputation upon its launch. Up to now, we have had four Tour Light 3.0 hotels open, in which three hotels had reached a full occupancy within a week.
Speaker 4: with the stylish, fashionable and trendy design, as well as its differentiated market positioning and competitive investment return. A tour, light 3.0 attracted French IZ recognition shortly after its launch.
Speaker 4: We signed 30 at 12 light 3.0 projects in the second quarter, accounting for over 15% of the quarter's total signings.
Speaker 4: Following the gradual openings of our first batch of a tour light 3.0 hotels since late June .
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Speaker 4: The hotel brands made a comprehensive breakthrough across the mid-scale market as they quickly gained popularity among young customers.
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Speaker 4: and realize the rapid operational growth.
Speaker 4: A tour line 3.0 precisely captures young customers' aesthetic preferences and caters to their demand for high quality experiences.
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[Company Representative] (Atour Lifestyle Holdings): Atour Light 3.0 precisely captures young customers' aesthetic preferences and caters to their demand for high quality experiences, creating a brand new experience for the Gen Z plus demographic in the midscale hotel market, while enhancing its brand recognition and value proposition. We believe Atour Light has great potential to become our second brand to reach the 1,000 hotel milestone, given its strong product competitiveness and widespread market recognition.
Meanwhile, the leading Red Par performance among others in the same business district greatly enhanced the investment confidence of those franchisees and had been proven to be a very competitive product in the current mid-scale hotel market. As of June 30, we have signed a total of 46 AtorLite 3.0 products.
Speaker 4: creating a brand new experience for the Gen Z plus demographic in the mid-scale hotel market, while enhancing its brand recognition and value proposition.
Speaker 4: We believe that Toralite has great potential to become our second brand to reach the 1000 hotel milestone, given its strong product competitiveness and widespread market recognition.
Haijun Wang: 继轻居3.0的成功问世，我们也在上海奉贤的产品研发基地同步进行的亚朵4.0产品的开发，预计在今年年底推向市场。
Thank you.
Thank you. Please invite next question.
Please invite next question. Thank you.
Following a tour of light 3.0's successful debut, we are proactively developing the next generation product for our flagship tour brand in Shanghai. We expect to introduce this product to the market by the end of this year.
Our next question comes from Zhiyi Wang from Hightong International. Please ask your question, Judy.
[Company Representative] (Atour Lifestyle Holdings): Following Atour Light 3.0 successful debut, we are proactively developing the next generation product for our flagship Atour brand in Shanghai. We expect to introduce this product to the market by the end of this year.
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Haijun Wang: 在进入到零售业务前，我想谈谈我们为用户提供的亚朵锦囊A Plus服务。用户体验一直是亚朵区别于同业的核心竞争力。我们通过亚朵锦囊A Plus服务产品，不断定义绝佳的用户体验，进而促进我们会员数量健康且可持续的增长。举例来说，如果用户在预定时勾选了亚朵锦囊A Plus的选枕服务，那么他们将在入住时体验到亚朵星球深睡枕所带来的安心、舒心的睡眠体验。至今为止，我们已为用户精心挑选和设计了20余项A Plus服务，用户使用率也在不断提升。展望未来，我们将推进围绕实用、温暖、懂我的产品开发战略，发掘顾客的真实需求，推出创新的标准个性化服务产品，为所有入住亚朵的用户持续提供非凡的住宿体验。
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myself, we noticed the retail segment book's rapid growth. Could you please kindly share with us some advantages of the business and what's the driver behind the growth and also what's the current profitability of the retail segment and do you have any expectation on the scale of the retail segments in the next few years?
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In this video, he discusses their target individual issues and his approach fortrak He decides to accept members Given Thank you for listening.
Before I move on from hotels, I would like to touch on our A-plus offerings for A-Card loyalty members.
[Company Representative] (Atour Lifestyle Holdings): Before I move on from hotels, I would like to touch on our A Plus offerings for A-Card loyalty members. At Atour, customer experience has always been the core competitive advantage that sets us apart from our competitors. We continue to redefine the ultimate in customer experiences through our A Plus offerings, which in turn promotes healthy and sustainable growth in our member base. For example, if a customer chooses the pillow selection service from the A Plus menu at the time of booking, they will receive a cozy, superior sleep experience with our self-developed deep sleep pillow. To date, we have carefully selected and designed over 20 A Plus services for our A-Card members, and we are witnessing an increasing adoption rate.
At a tour, customer experience has always been the core competitive advantage that sets us apart from our competitors.
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We continue to redefine the ultimate in customer experiences through our A-plus offerings, which in turn promotes healthy and sustainable growth in our member base.
Relying on our hotel scenes and the real user experiences, the sleep products we developed have been loved by a large number of customers and have gradually expanded from seat users who stayed in our hotels to a wider group of consumers, gradually winning consumers' minds when it comes to the concept of deep sleep.
For example, if a customer chooses the pillow selection service from the 8 plus manual at the time of booking.
They will receive a cozy, superior sleep experience with our self-developed deep sleep pillow.
To date, we have carefully selected and designed over 20 A-plus services for our ACARD members, and we are witnessing an increasing adoption rate.
And our products have achieved a very good sale results on multiple e-commerce platforms.
Going forward, we will advance our A-PLA's product to development with practical, warm, and congenial experiences in mind as we identify customers' real demands and provide them with innovative offerings, which are standardized yet personalized.
and use it to solve equations of lieutenant, which are not already over firefighter requirements, Thank you for watching.
[Company Representative] (Atour Lifestyle Holdings): Going forward, we will advance our A Plus product development with practical, warm, and congenial experiences in mind as we identify customers' real demands and provide them with innovative offerings, which are standardized yet personalized to ensure an exceptional experience during their stay at Atour properties and beyond.
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to ensure an exceptional experience during their stay at a tour properties and beyond.
Our continuously improving branding awareness together with the product power growth based on our understanding of the consumers and our R&D innovations. Plus, they synchronize the drive of online and offline channels.
Thank you for your attention.
We hope you will enjoy this talk. We hope you will enjoy this talk.
Haijun Wang: 通过不断创新、稳定提升的体验交付，我们的会员规模继续保持健康的增长势头，并于二季度末达到4,400万。同时，我们的客源渠道不断优化，个人会员和企业协议客户持续增长。第二季度CRS渠道销售间夜占比提升至63%。
At the same time, our operating system is not a good thing.
Thank you for watching.
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Our commitment to continuous innovation and consistent delivery of elevated experiences resulted in healthy growth across our membership base.
[Company Representative] (Atour Lifestyle Holdings): Our commitment to continuous innovation and consistent delivery of elevated experiences resulted in healthy growth across our membership base. By the end of Q2, over 44 million individual members had joined the A-Card membership program. Our ongoing efforts to optimize customer channels alongside a rising number of both individual and corporate members, propelled an increase in a percentage of room nights sold through our CRS, which reached 63% in Q2.
By the end of the second quarter, over 44 million individual members had joined the ACARD membership program. Our ongoing efforts to optimize customer channels, alongside a rising number of both individual and corporate members, propelled an increase in the percentage of room nights sold.
through our CRS, which reached a 63% in the second quarter.
Thank you for your attention.
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Haijun Wang: 接下来是我们的场景零售业务。本季度零售业务再创佳绩，整体GMV达到2.67亿人民币，同比增长近3倍。其中我们的睡眠品牌亚朵星球也表现出色，第二季度的GMV贡献占比接近九成。618购物节期间，线上线下整体GMV更是超过了1.3亿人民币。
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Thank you. Please have next question. Thank you. The next question comes from Xin Chen from UBS. Please ask your question, Xin. Hello, everyone. I'm Xin Chen from UBS. I'm a senior at UBS. I'm a senior at UBS. I'm a senior at UBS. I'm a senior at UBS. I'm a senior at UBS.
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Moving to our scenario based retail business.
We achieved another strong quarter with GMV, increasing almost three times year over year to RMB 267 million. Our sleep brand, a tour planet in particular, demonstrated extraordinary performance, contributing nearly 90% of our total GMV in the second.
[Company Representative] (Atour Lifestyle Holdings): Moving to our scenario-based retail business. We achieved another strong quarter, with GMV increasing almost three times year-over-year to RMB 267 million. Our sleep brand, Atour Planet, in particular, demonstrated extraordinary performance, contributing nearly 90% of our total GMV in Q2. Total GMV, including both online and offline sales during the June 18th Shopping Festival, surpassed RMB 130 million.
Thank you for your question. This is the first dividend that we've had in our history in the past 10 years.
past the RMB 130 million.
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Haijun Wang: 目前我们的酒店网络覆盖1,000多家门店，12万间客房。每家酒店都是我们零售产品的展厅，每间客房都为用户提供了沉浸式体验的空间。用户的真实反馈使我们能够持续探索用户不断变化的需求，并相应地拓展我们场景零售产品品类，由此将卓越的生活方式体验延伸到酒店之外，更广泛地践行经营人群的理念。我们成功研发并推出了亚朵星球深睡枕，并持续进行产品迭代升级，使其迅速成为畅销产品。618购物节期间，亚朵星球累计售出22万个枕头，在多个主流电商平台的枕头品类畅销榜上名列前茅。今年3月，我们推出了亚朵星球的最新产品夏凉被，上市后也呈现不错的增长势头。
See you in too.
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and the amount of this dividend accounts for approximately 6% of our cash position. And we also take into consideration of our accumulated profits in the previous years and the overall business duration and our future demand in capital. So we hope to express our gratitude to the shareholders for their long-term support. So going forward in terms of our future dividend plan, we also consider various factors including our cash position, our future capital needs. We will also make reference to the market practice or the industry practice.
Thank you for your attention.
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and also can study the main market condition to determine our future dividend. Thank you. Thank you. And that concludes the question and answer session. I would like to turn the conference back to Alison Zhang for any additional or closing comments.
Thank you for watching.
Today, we have more than 1,000 hotels in Composite 120,000 rooms within our hotel network.
[Company Representative] (Atour Lifestyle Holdings): Today, we have more than 1,000 hotels encompassing 120,000 rooms within our hotel network. Each hotel represents an exhibition hall for our retail products, while each room functions as an immersive shopping destination for our hotel customers. Their feedback enables us to continuously and organically explore customers' ever-evolving demands and expand our retail product categories accordingly. This, in turn, empowers us to extend our exceptional lifestyle experience beyond accommodation to serve more people. Our commitment to continuous product refinement in pursuit of a truly superior sleep experience has made the Atour Planet Deep Sleep Pillow a blockbuster product. During the June 18th Shopping Festival, Atour Planet topped the best-selling pillow brands with total sales of 220,000 units across multiple mainstream e-commerce platforms. Furthermore, in March 2023, we launched Atour Planet's new product, the Summer Cool Quilt, which has already demonstrated promising growth momentum.
Each hotel represents an exhibition hall for our retail products, while each room functions as an immersive shopping destination for our hotel customers.
This concludes today's conference call. Thank you for participating. You may now disconnect. Please return to your seats. Thank you.
Their feedback enables us to continuously and organically explore customers ever evolving demands and expand our retail product categories accordingly.
This, in turn, empowers us to extend our exceptional lifestyle experience beyond accommodation to serve more people. Our commitment to continuous product refinement in pursuit of a truly superior sleep experience has made the a tour planet deep sleep pillow a blockbuster product.
of 220,000 units across multiple mainstream e-commerce platforms.
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Haijun Wang: 未来我们将持续深耕深睡领域，发挥酒店作为消费者真实睡眠体验空间的核心优势，通过数据和体验驱动产品研发，不断丰富和扩展产品品类，为更多用户提供极致的深睡体验。
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Going forward, we will invest a further and expand our penetration in the field of deep sleep as we continue to leverage big data and customer feedback to advance product development and broaden our offering categories.
[Company Representative] (Atour Lifestyle Holdings): Going forward, we will invest further and expand our penetration in the field of deep sleep as we continue to leverage big data and customer feedback to advance product development and broaden our offering categories.
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Haijun Wang: 2023年对亚朵来说是一个特殊的年份，它不仅标志着后疫情时代的开始，也印刻了公司成立的第十周年。10年前，我们与亚朵村偶遇，被亚朵村自然、静谧、温暖、朴实所感动。亚朵名字的灵感也由此而来。过去的10年里，亚朵提供的服务远不止于一个舒适的休憩空间。我们在乎每一位旅客，关心他们在入住期间方方面面的感受和体验。一直以来，我们始终努力将极致的中国体验融入亚朵千家酒店，从入住到离店的每一个场景。一路走来，亚朵村的愿景和信念指引着我们踏实前行，业务足迹逐步覆盖全国176个城市。在为消费者提供优质产品和非凡体验的同时，也将亚朵村特有的茶香、温馨与恬静和旅人一同分享，让人与人之间有温度的连接。
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2023 is a special year for a tour, as it not only marks the commencement of the post-apendemic era, but also the 10th anniversary of our company. Thank you.
[Company Representative] (Atour Lifestyle Holdings): 2023 is a special year for Atour, as it not only marks the commencement of the post-pandemic era but also the 10th anniversary of our company. When we first set foot in Yaduo Village 10 years ago, we were instantly captivated by its natural beauty, peace, warmth, and purity, which subsequently inspired us to choose the name Atour. Over the past 10 years, our focus has been on providing more than just a comfortable place to stay. We genuinely care about each and every one of our customers, and we strive to ensure that every aspect of their stay with us is exceptional. We are committed to incorporating the essence of a Chinese experience into all of our services, from the moment customers check in through the moment they depart in each of our 1,000-plus hotels.
When we first set foot in Yadl village 10 years ago, we were instantly captivated by its natural beauty, peace, warmth and purity, which subsequently inspired us to choose the name a tour.
Over the past 10 years, our focus has been on providing more than just a comfortable place to stay. We generally care about each and every one of our customers.
and we strive to ensure that every aspect of their stay with us is exceptional.
We are committed to incorporating the essence of a Chinese experience into all of our services.
From the moment customers check in through the moment they depart. In each of our 1000 plus hotels.
Our faith in the vision of Yadu village has guided us throughout our journey as we extended our footprint across 176 cities nationwide.
[Company Representative] (Atour Lifestyle Holdings): Our faith in the vision of Yaduo Village has guided us throughout our journey as we extended our footprint across 176 cities nationwide. While we provide customers with premium offerings and exceptional experiences, we also share Yaduo Village's fragrant specialty, as well as its warmth and peace with travelers, creating an intimate ambience where people can warmly connect. Before I wrap up, I would like to take this opportunity to welcome our new co-CFO, Mr. Jianfeng Wu. He will mainly be responsible for overseeing the company's capital market matters, including investor relations and financing management, as well as providing administrative and other support to the board, and assisting in daily operations. I believe his distinguished leadership skills and extensive experience in the capital markets will play an essential role in the company's long-term sustainable growth as we progress towards our next phase of development.
While we provide customers with premium offerings and exceptional experiences, we also share Yado village's fragrance specialty, as well as its warmth and peace with travelers, creating an intimate ambience where people can warmly connect. is
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Before I wrap up, I would like to take this opportunity to welcome our new Co-CFO, Mr. Wu Jianfeng. He will mainly be responsible for overseeing the company's capital market matters, including investor relations and financing management.
as well as providing administrative and other support to the board and a distinct and daily operations.
I believe his distinguished leadership skills and extensive experience in the capital markets will play an essential role in the company's long-term sustainable growth as we progress towards our next phase of influence.
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Now I'll turn the call over to our co-CFO, Mr. Lui-Hian Feng, to discuss our financial results. Thank you, Hai Jun. Good evening and good morning, everyone. Now I would like to present the company's financial performance for the second quarter of 2023.
[Company Representative] (Atour Lifestyle Holdings): Now, I'll turn the call over to our co-CFO, Mr. Jianfeng Wu, to discuss our financial results.
Jianfeng Wu: Thank you, Haijun. Good evening, and good morning, everyone. I would like to present the company's financial performance for Q2 2023. Our net revenue for Q2 2023 grew by 112.3% year-over-year and 41.2% quarter-over-quarter to CNY 1,093 million. The strong increase in Q2 was driven by the robust growth in both our hotel and scenario-based retail businesses. Revenues from our managed hotels for Q2 2023 were CNY 626 million, up by 112.3% year-over-year and 40.2% quarter-over-quarter. This increase was primarily driven by the ongoing expansion of our hotel network and the increase in RevPAR. The total number of managed hotels increased to 1,001 as of 30 June 2023, up by 25.0% year-over-year and 7.1% quarter-over-quarter, while RevPAR recovered to CNY 377 for Q2.
2023, our net revenue for the second quarter of 2023 grew by 112.3% year-over-year and 41.2% quarter-over-quarter to RMB 1,093 billion.
The strong increase in the second quarter was driven by the rubber growth in both our hotel and scenario-based retail business. Revenue from our MannerSize hotel for the second quarter of 2023 will R&B 600 and 26 million.
Up by 100 and 12.3% year over year and 40.2% quarter of quarter.
This increase was primarily driven by the ongoing expansion of our hotel network and the increase in rep power.
The total number of managed hotels increased to 1,011 as of June 30, 2023, up by 25.0% year-over-year and 7.1% quarter-over-quarter.
While Repo recovered to RMB 377 for the second quarter.
RMB 377 for the second quarter.
Revenues contributed by R&D hotels for the second quarter of 2023 were RMB 220 million, representing an increase of 53.6% year-over-year and 17.2% quarter-over-quarter.
Jianfeng Wu: Revenues contributed by our leased hotels for Q2 2023 were RMB 220 million, representing an increase of 53.6% year over year and 17.2% quarter over quarter. The increase was primarily due to the rebound in RevPAR, driven by recovering customer traffic and stronger customer sentiment since the beginning of 2023. RevPAR of our leased hotels recovered to RMB 537 for Q2. Revenues from retail and others for Q2 2023 increased by 222.2% year over year and 76.4% quarter over quarter to RMB 247 million, with scenario-based retail revenues growing by 297.8% year over year to RMB 212 million. These increases were attributable to our ongoing efforts to tap into ever-changing customer needs, as well as data-driven product development, which enabled us to consistently launch sleep products favored by users.
The increase was primarily due to the rebound in RAPAR, driven by recovering customer traffic and stronger customer sentiment since the beginning of 2023.
Rest part of Audi's hotels recovered to RMB 537 for the second quarter.
Revenements from retail and others for the second quarter of 2023 increased by 222.2% year-over-year and 76.4% quarter-over-quarter to R&B 247.
With scenario-based retail revenues growing by 297.8% year-over-year to R&B 200 and 12 minutes.
These increases were attributable to our ongoing efforts to tap into ever-changing customer needs as well as data-driven product development.
which enables us to consider the large steep products favored by users.
In addition, we continue to leverage both online and offline channels, expanding our customer base and enhancing our brand recognition.
Jianfeng Wu: In addition, we continue to leverage both online and offline channels, expanding our customer base and enhancing our brand recognition. Now, let's move to costs and expenses. Our hotel operating costs for Q2 2023 increased by 56.7% year over year to CNY 510 million, mainly due to the increase in variable costs, such as supply chain costs associated with the ongoing expansion of our hotel networks. Hotel operating costs accounted for 60.2% of total hotel revenues for Q2 2023, compared with 74.2% for the same period of 2022. The decrease was due to the robust recovery of RevPAR and the economics of scale brought by our rapid network expansion, which led to a significant increase in the gross profit margin of the hotel business.
Now let's move to costs and expenses.
Our hotel operating costs for the second quarter of 2023 increased by 56.7% year-over-year to our 510-minute. Many due to the increase in variable costs, such as supply chain costs associated with the ongoing extension of our hotel network.
Hotel operating costs accounted for 60.2% of total hotel revenues for the second quarter of 2023, compared with 74.2% for the same period of 2022.
The decrease was due to the rubber recovery of rap rock and the economics of scale brought by our rap in network expansion, which set to a significant increase in the growth-prope margin of the hotel business.
due to the robust recovery of RAPOC and the economics of scale brought by our rapid network expansion, which set to a significant increase in the growth-proper margin of the hotel business. Other ovating caused.
For the second quarter of 2023 for RMB 121 million, representing an increase of 189.9% year-over-year, driven by increase the cost in line with the rapid growth of our scenario-based retail business.
Jianfeng Wu: Other operating costs for Q2 2023 were CNY 121 million, representing an increase of 189.9% year-over-year, driven by increased costs in line with the rapid growth of our scenario-based retail business. Other operating costs accounted for 49.0% of retail revenues and others for Q2 2023, compared with 54.4% for the same period of 2022. The decrease was attributable to the improving profitability of our retail business. Selling and marketing expenses for Q2 2023 increased by 197.3% year-over-year to CNY 94 million. Selling and marketing expenses accounted for 8.6% of net revenues for Q2 2023, compared with 6.2% for the same period of 2022, primarily driven by the increased investment in branding initiatives and rapid growth of the scenario-based retail business through online channels. General and administrative expenses for Q2 2023 were CNY 73 million.
Are the operating costs accounted for 49.0% of retail revenues and others for the second quarter of 2023, compared with 54.4% for the same period of 2022?
That decrease was a spiritual to the improving profitability of our retail business.
Setting and marketing expenses for the second quarter of 2023 increased by 197.3% year over year to have an RMB 94 minutes.
Setting and marketing expenses accounted for 8.6% of net revenues for the second quarter of 2023, compelled with 6.2% for the same period of 2022. Primarily, driven by the increased investment in branding initiatives and rapid growth of the scenario-based retail business.
through all my channels. General and administrative expenses for the second quarter of 2023 will RMB 73 Minin. Excruiting shell-based compensation expenses of RMB 9 Minin, adjusted general and administrative expenses increased by
Jianfeng Wu: Excluding share-based compensation expenses of RMB9 million, adjusted general and administrative expenses increased by 54% year-over-year to RMB64 million for Q2. General and administrative expenses, excluding the impact from share-based compensation expenses, accounted for 5.9% of net revenues for Q2 of 2023, compared with 8.1% for the same period of 2022. Our technology and development expenses for Q2 of 2023 were RMB18 million, compared with RMB16 million for the same period of 2022. Adjusted EBITDA for Q2 of 2023 was RMB344 million, up by 232.4% year-over-year. Adjusted net income for Q2 increased by 312.9% year-over-year to RMB249 million. Adjusted profit margin for Q2 of 2023 was 22.8%, increasing by 11 percentage points year-over-year.
54% year over year to RMB 64 minutes for the second quarter. Dural and administrative expenses, excluding the impact from Shabby's compensation expenses, accounted here. Adjusted net income for the second quarter increased by 300, 12 and 12.9% year over year to RMB 245 million.
Jianfeng Wu: The significant increase in gross profit margin in both our hotel and scenario-based retail businesses, along with our optimizing operating leverage led to an improvement in the group's overall net profit margin. Notably, we have maintained a healthy cash position with a stable growth momentum. As of 30 June 2023, our cash and cash equivalents totaled RMB2.53 billion. Among them, net cash was RMB2.46 billion, representing an increase of 39.4% quarter-over-quarter. We declared a cash dividend of $0.05 per ordinary share today, or $0.15 per ADS. The total amount of cash to be distributed for the dividend is expected to be approximately $21 million. That concludes our financial highlights for Q2 2023. With that, let's open for Q&A.
Operator 2: Thank you. We will now begin the question-and-answer session. To ask a question, please press *11 on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press *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 limit your questions to one at a time. If you wish to have a follow-up question, please rejoin the queue. Our first question comes from the line of Sijie Lin from CICC. Please ask your question, Sijie.
Sijie Lin: I have a question on RevPAR. What's the trend of RevPAR recovery during the summer vacation? How should we expect the RevPAR recovery rate in Q3? Will we adjust full-year guidance? Thank you.
Shoudong Wang: 好的，感谢思洁的提问。今年暑期的需求是非常强劲的，跟往年相比，暑期的流量开始得也更早一些。我们在七月份的第一周就能明显地看到客流的增加，往年都是一个渐进增加的趋势。整个七月份，我们的ADR已经突破了500元，入住率是超过了84%。这两项也都是我们月度的历史新高。RevPAR和2019年同期相比，回升了122%。ADR和OCC的全面提升，也展现了我们长期的、可持续的、高质量的增长能力。
[Company Representative] (Atour Lifestyle Holdings): Thank you very much for your question, Miss Lin. The demand in summer this year was very strong. The summer traffic started earlier when compared to previous years. Also, the increase in traffic this year was clearly visible even in the first week of July, while in previous years, those were more of a trend of gradual growth. In July, our ADR had exceeded CNY 500, and our OCC exceeded 84%, both of which were monthly all-time highs. The RevPAR rebounded 122% compared to the same period of 2019. This overall increase in both our ADR and OCC demonstrates our capability to maintain long-term sustainable and high-quality growth.
Shoudong Wang: 也基于暑期良好的表现和亚朵作为商旅出行首选品牌的优势的进一步夯实，我们预期全年的RevPAR会有不错的表现。全年的RevPAR恢复度，我们预计在113%到117%这个区间。好，谢谢思洁。
[Company Representative] (Atour Lifestyle Holdings): Based on this summer's good performance and Atour's advantages as we consolidate our foundation of our competitive advantage being the preferred brand for business travelers, we expect a good RevPAR performance for the full year. The full year RevPAR recovery is expected to be in the range of 113% to 117%. Thank you very much, Sijie, for your question.
Allison Zhang: Thank you. Let's have our next question, please.
Operator 2: Thank you. Our next question comes from the line of Ronald Leung from Bank of America. Please ask your question, Ronald.
Ronald Leung: Thank you。管理层晚上好，谢谢你给我一个提问的机会。还有公司管理层这个季度的业绩也是非常好的。我的问题就是，刚刚管理层提到上调了全年的RevPAR的指引，那么可以分享一下对2023年全年的收入还有利润的预期现在是怎么样？I will ask my question in English。Management just mentioned that the RevPAR guidance for fiscal year 2023 has been uplifted to 113 to 117%。May I ask, what is the latest expectation for the full year revenue and profit? Thank you very much。
Shoudong Wang: 感谢Ronald的提问，我来回答一下这个问题。基于全年RevPAR恢复度113%到117%，我们预计全年收入将同比增长72%到76%，其中零售收入预计可以达到6.5到7亿人民币。随着酒店的持续扩张，规模效应的逐步释放，以及我们零售业务的不断发展，我们预计盈利能力将不断提升。
[Company Representative] (Atour Lifestyle Holdings): Thank you very much, Ronald, for your question. Just now we said that our full year RevPAR recovery is expected to reach 113% to 117%. In terms of revenue, we expect a year-over-year growth of 72% to 76%, of which retail revenues are expected to be able to reach CNY 650 to 700 million. With our continued expansion of the hotel network, the gradual release of our scale effects, and the continuous development of our retail business, we expect profitability to continue to improve.
Shoudong Wang: 好的，谢谢。
[Company Representative] (Atour Lifestyle Holdings): Thank you very much, Ronald.
Allison Zhang: Thank you. Let's have next question, please.
Operator 2: Certainly. Our next question comes from the line of Lydia Ling from Citi. Please ask your question, Lydia.
Lydia Ling: 好，谢谢管理层。我是Lydia。我这边是想请教一下，我们在开店方面的一个情况。基于目前的咱们整体的一个开店进度和包括加盟商的一些信心，公司是否会调整全年的开店目标？另外，我们其实也看到了公司上半年整体的签约情况也是不错，尤其在二季度。那么对下半年的签约指引有怎样的一些变化？我翻译一下。Thanks management. So I want to ask about the expansion. So based on the year to date expansion, are you going to adjust your full year opening target?
Lydia Ling: Also we saw very encouraging improvement in the new signs in H1. Any guidance for H2? Thank you.
Shoudong Wang: 感 谢 Lydia.
Haijun Wang: 我们第一季度的开店受到了去年疫情和今年春节假期的影响。那么第二季度我们开店是70家，跟第一季度相比，提速也是非常明显的。那么下半年我们将继续保持积极开店的节奏，也维持全年280家的这样一个开店的目标。
[Company Representative] (Atour Lifestyle Holdings): Thank you very much, Lydia, for your question. Our new hotel openings in Q1 this year were affected by last year's epidemic and the Spring Festival holiday. We opened 70 new hotels in Q2, showing clear acceleration when compared with Q1. In H2 of the year, we will continue to maintain the rhythm of active new hotel openings, maintaining the annual opening target of 280.
Haijun Wang: 我们Q1签约了94家，Q2签约超过了180家，也创造了历史的新高。那么签约数据的快速增长也体现了加盟商信心的恢复，以及他们对亚朵我们的三高，就是高品质、高溢价、高效率的经营模式的认可。
[Company Representative] (Atour Lifestyle Holdings): In Q1 this year, we signed 94 projects. In our Q2, we signed a record high of more than 180 projects. The rapid growth in signings reflected the restoration of the franchisees' confidence in us, and also their recognition of Atour's three high strategy, namely high quality, high value, and high efficiency, as well as our operational model.
Haijun Wang: 我们预计下半年的签约仍会有非常不错的表现，我们也在保持上半年增长趋势上追求质量。今年管道内的这种项目的储备也是非常充足的，也为我们2025年2000好店的目标打下了一个坚实的基础。谢谢。
[Company Representative] (Atour Lifestyle Holdings): We expect the signings to continue to perform well in H2, while we would strive for better quality on the basis of the H1's growing trend. This year, our pipeline can provide a solid foundation for our goal of having 2,000 premium hotels by 2025. Thanks, Lydia.
Allison Zhang: Thank you. Let's invite our next question.
Operator 2: Thank you. Our next question comes from Jiwei Liu from CITIC. Please ask your question, Jiwei.
Jiwei Liu: 管理层，我是中信证券的刘继伟，我这边想关于轻居3.0请教两个问题。第一个问题还是想请管理层再帮我们详细介绍一下目前整个轻居3.0的品牌定位，尤其是在目前整个终端市场，我们认为整个轻居3.0的竞争优势有哪些？第二个方面，其实我们也有关注这个轻居3.0在6月底的落地，能不能帮我们对这批首批落地的门店开业后的经营表现再做一些更详细的一些分享。I repeat my question.
Jiwei Liu: Could you tell us more about Atour Light 3.0, such as the brand positioning and the advantage in the mid-scale hotel industry? Besides, can you share the performance of those stores after opening? Thanks.
Haijun Wang: 好，感谢继伟的提问。轻居3.0是在2月22号正式发布的，是我们集团定位中端的年轻的商旅品牌。我们在这个时间把轻居3.0推向市场，主要是看到了两个方面的机会。第一个机会是我们认为今天中端市场当前的酒店产品和用户的需求是极度不匹配的。这些年轻的商务旅客对高品质的住宿体验的需求是不断增加的。那么第二个机会就是核心商圈物业升级的机会，我们也看到未来将会有更多合适的物业，地段好的、品质多的能够出来进入到我们轻居的体系。
[Company Representative] (Atour Lifestyle Holdings): Thank you very much, Zhiwei, for your question. Atour Light 3.0 was officially launched on 22 February and is our Group's mid-scale brand, uniquely catering to young urban business travelers. We launched Atour Light 3.0 at this time, mainly due to two great opportunities we saw. One was that the significant mismatch between the existing hotel products in the mid-scale market and the customer demand. As we saw, the young business travelers had got increasing demand for high-quality accommodation experiences. The other was the opportunity to upgrade those properties in the core business districts. There will be more properties in that kind of hot areas suitable for Atour Life in the future.
Haijun Wang: 我们推出的轻居3.0的产品，在产品的设计上是时尚、质感和潮流，在服务体验上跟亚朵的服务体验是基本一致的。一经推出，就赢得了良好的用户的口碑。截止到目前，我们已经有4家轻居3.0的门店开业了，其中3个酒店开业一周就达到了满房。爬坡期也是明显缩短，表现也是非常不错。
[Company Representative] (Atour Lifestyle Holdings): Our Atour Light 3.0 product with its fashionable, stylish, and trendy design and the quality service experience up to Atour's standard, has won a good user reputation upon its launch. Up to now, we have had 4 Atour Light 3.0 hotels open, in which 3 hotels had reached the full occupancy within a week of opening. With that significantly shortened ramping up period, it was a very decent performance.
Haijun Wang: 我们在同商圈领先的RevPAR表现，也极大增强了加盟商的投资信心。轻居是当前中端酒店市场内非常有竞争力的产品。截止到6月30号，我们已经累计签约了46个轻居3.0的项目。我们也预期到2025年，我们将会开出250到300家轻居酒店。
[Company Representative] (Atour Lifestyle Holdings): Meanwhile, the leading RevPAR performance among others in the same business districts greatly enhanced the investment confidence of those franchisees, and has been proven to be a very competitive product in the current mid-scale hotel market. As of 30 June, we have signed a total of 46 Atour Light 3.0 projects, and by 2025, we plan to open 250 to 300 Atour Light hotels.
Haijun Wang: 好的，谢谢。
[Company Representative] (Atour Lifestyle Holdings): Thank you, Jiwei.
Allison Zhang: Thank you. Please invite next question.
Operator 2: Thank you. Our next question comes from Zhiyi Wang from Haitong International. Please ask your question, Zhiyi.
Zhiyi Wang: 谢谢管理层接受我的提问，也恭喜管理层这个季度取得了一个非常好的业绩。那我想问一个关于零售的问题。我们看到零售业务这个季度增长得非常的快，那我们觉得核心的优势是啥呢？然后目前来看的话，零售业务的盈利水平是怎么样的？未来几年咱们对这个业务做到多大规模？有没有什么预期？I can translate myself. We noticed the retail segment booked rapid growth.
Zhiyi Wang: Could you please kindly share with us some advantages of the business, and what's the driver behind the growth? Also, what's the current profitability of the retail segment? Do you have an expectation on the scale of the retail segment in the next few years? 谢 谢. Thank you.
Haijun Wang: 好的，感谢志怡的提问。亚朵我们的定位就是始于住宿的生活方式的品牌集团。零售业务是我们经营人群的第一个延展性的探索。依托了我们酒店的场景和真实的用户体验，我们研发的睡眠类的产品受到了广大用户的喜爱，并且从酒店的种子用户逐步扩大到更大、更广泛的消费者的群体，逐渐地占领了用户的深睡的心智，也在各个线上的电商平台都取得了非常好的销售成绩。
[Company Representative] (Atour Lifestyle Holdings): Thank you, Zhiwei, for your question. Atour is positioned as a lodging centric lifestyle brand. Our retail business is the first extension we explore to serve more people. Relying on our hotel scenes and the real user experiences, the sleep products we developed have been loved by a large number of customers and have gradually expanded from seed users who stayed in our hotels to a wider group of consumers, gradually winning consumers' minds when it comes to the concept of deep sleep. Our products have achieved very good sale results on multiple e-commerce platforms.
Haijun Wang: 持续提升的品牌影响力，还有我们基于对用户理解和研发创新带来的这些产品力的增长，线上和线下渠道的同步驱动，酒店与零售业务的互动融合，我想这些都带来了我们零售业务的快速发展，也塑造了亚朵做零售业务的独特的优势。
[Company Representative] (Atour Lifestyle Holdings): Our continuously improving branding awareness, together with the product power growth based on our understanding of the consumers and our R&D innovations. Plus, we synchronize the drive of online and offline channels, and the interactive integration with our hotel business have jointly brought about the rapid development of our retail business and shaped Atour's unique advantages in that.
Haijun Wang: 我们预计2023年零售业务的收入达到是6.5到7亿人民币，同比增长将会超过150%，也成为集团的第二个增长的引擎，同时也代表着亚朵向着领先的生活方式品牌集团的愿景更进一步。谢谢。
[Company Representative] (Atour Lifestyle Holdings): We expect our retail business revenue to reach RMB 650 to 700 million in 2023, with a year-over-year growth of 150%, making it the second growth engine of our group, also demonstrating a further step towards Atour's vision of being a leading lifestyle brand group. Thank you.
Allison Zhang: Thank you. Please have next question.
Operator 2: Thank you. Next question comes from Xin Chen from UBS. Please ask your question, Xin.
Xin Chen: 终于到我了。各位观众晚上好，我是UBS的陈新，很高兴能有这次提问的机会。因为我看到公司的另外一个公告是关于我们的分红的，对上来说可能是一个很大的惊喜，尤其在现在整个的市场这么差的情况下，我们公司还有分红的这种惊喜。那我想问的一个问题是，除了这次分红以外，在未来是否会有定期的分红的安排呢？
Jianfeng Wu: Thank you for your question. This is the first dividend declared in our history in the past 10 years. This is the first dividend declared after our IPO last year. We have considered several factors to determine the amount of this dividend, including our cash position. You may notice that we have 2.5 billion cash as of 30 June 2023. The amount of this dividend accounts for approximately 6% of our cash position. We also take into consideration of our accumulated profit in the previous years and the overall business situation and also future demand in capital. We hope to express our gratitude to the shareholders for their long-term support. Going forward, in terms of our future dividend plan, we'll also consider various factors, including our cash position, our future capital needs.
Jianfeng Wu: We will also make reference to the market practice or the industry practice, and also consider the then market condition to determine our future dividend. Thank you.
Operator 2: Thank you. That concludes the question and answer session. I'd like to turn the conference back to Allison Zhang for any additional or closing comments.
Allison Zhang: Thank you once again for joining us today. If you have any further questions, please feel free to contact our investor relations team. We look forward to speaking with you again next quarter. Thank you and goodbye.
Operator 2: This concludes today's conference call. Thank you for participating. You may now disconnect.
