Q3 2023 Atour Lifestyle Holdings Ltd Earnings Call

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Ladies and gentlemen, thank you for standing by and welcome to the H.O. lifestyle holdings, 3rd quarter 2020 free earnings conference call. At this time, our participants are in listen only mode. After the speakers presentation, there'll be a question and answer session. Today's conference being recorded. At this time, I'd like to turn the conference over to Ms. Allison Zhang, director of investor relations. Please go ahead, mom.

Ladies and gentlemen, thank you for standing by and welcome to the H O lifestyle Holdings third quarter 2020 for your earnings Conference call.

At this time, all participants are in listen only mode.

After the Speakers' presentation there'll be a question answer session. Today's conference is being recorded.

At this time I'd like to talk to the conference over to MS. Alison Zhang Director of Investor Relations. Please go ahead maam.

Thank you, operator. Good morning and good evening, everyone. Welcome to our SecForter 2023 earnings call. Joining us today are founder, chairman, and CEO , Mr. Wang Haijun, and our co-chief financial officers, Mr. Wang Shodong and Mr. Wu Qianfeng.

Thank you operator, good morning, and good evening, everyone welcome to our third quarter of 2023 earnings call. Joining us today are founder Chairman and CEO, Mr. Wahl hygiene, and our co Chief Financial Officer are you still won't show dog and Mr. Jansen before we continue please be aware.

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.

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.

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.

Additionally, during this call our management will discuss certain non-GAAP financial measures solely for comparison purposes.

Clear understanding of these measures and a reconciliation of GAAP to non-GAAP financial results. Please refer to the earnings release issued earlier today.

Furthermore, a webcast replay of this conference call will be available on our website at irr.yaduo.com. Now I will turn the call over to Mr. Wang, our CEO .

Furthermore, a webcast replay of this conference call will be available on our website at IR thought why do you owe dot com.

Now I will turn the call over to Mr. Wang.

Our CEO.

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Go ahead go ahead John.

Alright.

Thank you Joe.

Please subscribe to our channel and share this video with your friends.

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It has a 2,000-hp supply demand for China, and a continuous expansion of the brand's influence, allowing us to return to business and continue to grow our businesses under the same circumstances as we have forgotten.

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Good how are you.

Thank you, Allison. Hello, everyone, and thank you for joining a Tool's third quarter 2023 earnings call today. We are delighted to report another robust quarter.

Thank you Alison.

Hello, everyone and thank you for joining eye towards third quarter 2023 earnings call. Today, we are delighted to report another robust quarter.

Our unremitting pursuit of growing to 2,000 premier hotels nationwide by 2025, while establishing the Chinese experience as the industry benchmark, along with the continuous expansion of our brand influence.

Our unremitting pursue tough growing to 2000 premier hotels nationwide by 2025, while establishing the Chinese experience as the industry benchmark along with the continuous expansion of our brand influence enabled us to capture growth opportunities arising from.

enabled us to capture the growth opportunities arising from both business travel and the peak leisure travel season.

Both business travel and the peak leisure travel season as.

As such, we achieve the tremendous breakthroughs across each of our business lines.

As such we achieved a tremendous breakthroughs across each of our business lines.

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All I would like to discuss our performance in detail.

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The U.S. has reached 424 yuan for the pandemic. The U.S. has reached 424 yuan for the COVID-19 pandemic. The U.S. has reached 424 yuan for the COVID-19 pandemic.

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In addition, during the Mid-Autumn Festival and the National Day, ADR and OCC will continue to grow.

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Let's begin with our hotel business travel and accommodation demand maintained solid growth momentum in the third quarter highlighted by a notable uptick during the summer season, Accordingly, our third quarter Revpar increased to a record high of RMB 420.

Travel and accommodation demand maintained solid growth momentum in the third quarter, highlighted by a notable uptick during the summer season. Accordingly, our third quarter's RAVPAR increased to a record high of RMB 424.

And recovery rate rose to 118 percent of 2019's level, with July , August , and September reaching 122 percent, 116 percent, and 115 percent respectively.

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Recovery rates rose to 118% of 2019 level with July August and September, reaching 122% or 116% and 115% respectively.

Moreover, our ADR and OCC maintained their robust growth momentum during the Mid-Autumn Festival and the National Day holiday period, increasing by 14.6 percent and 7.2 percent respectively compared with the same period in 2019.

Moreover, our ADR and OCC maintained their robust growth momentum during the mid autumn festival and the National day holiday period.

Creasing by 14, 6% and seven 2%, respectively compared with the same period in 2019.

Together, they boosted our Revpar's recovery rate for the period to 123% of 2019's level.

Together, they boosted our revpar recovery rate for the period to 123% of 2019 level.

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with the overall performance of the Group, showing the value of the Asian brand and our high-profile management capabilities.

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Meanwhile, our mature hotels in operation for more than 18 months sustained their excellent performance.

Meanwhile, our mature hotels in operation for more than 18 months sustained their absolute performance. There same hotel revpar recovery rate reached a 118% of 2019 level in the third quarter in line with the overall performance of our hotel business.

Their same hotel rep power recovery rate reached a 118% of 2019 level in the third quarter. In line with the overall performance of our hotel business, highlighting the market's recognition of a tourist brand as well as outstanding efficiency across our business management and operation.

Delighting the markets recognition of our tour spread as well as outstanding efficiency across our business management and operations.

We continue to accelerate the progress of opening. The opening of the third quarter is 81 points.

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At the same time, we will continue to keep the rapid signing of the new products and brand strength, and we will continue to keep the rapid signing of the new products and brand strength.

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In September 30th, 577 hotels were opened in Guangdong, more than 60% of the price was increased.

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We continue to accelerate our hotel network expansion with 81 new openings in the third quarter, driving our hotel network to reach 1,112 hotels as of the end of September .

We continue to accelerate our hotel network expansion with 81, new openings in the third quarter driving our hotel network to reach 1112 hotels as of the end of September.

Meanwhile, propelled by our mounting competitiveness across products and brand, our third quarter's new signings grew rapidly and our pipeline continued to flourish.

Meanwhile, propelled by our mounting competitiveness across products and brand our third quarter's new signings grew rapidly and our pipelines continued to flourish.

As of the end of September , our pipeline had soared to 577 hotels up by more than 60% year over year.

As of the end of September our pipeline had soared to 577 hotels up by more than 60% year over year.

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From February 8th, we will continue to gain the heart of the family.

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This quarter, Starbucks 3.0 has signed a total of 25 new projects, with a 15% contract ratio.

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XinJue 3.0, with the support of young people's aesthetic design, and the support of Asian consciousness, successfully obtained the recognition of consumers.

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We believe that 3.0 is very satisfied with the needs of young businessmen to improve their quality of life.

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At Twilight 3.0, our mid-scale offering has continued to gain favor among franchisees since its launch in February . A total of 25 At Twilight 3.0 projects were signed over the quarter, constituting more than 15% of the quarter's total signing.

A tour like 3.0, our Midscale offering has continued to gain favor among franchisees since its launch in February.

A total of 25, a tour like 3.0 projects where sign over the quarter.

Constituting more than 15% of the quarter's total signings.

By the end of September , we had opened 13 at all like 3.0 hotels, primarily located in core business districts in higher tier cities.

By the end of September we had opened 13, a tour like 3.0 hotels, primarily located in core business districts in higher tier cities.

As a new hotel offering in the mid-scale market, Atour 3.0 has won broad market recognition for its stylish design as well as Atour's premiere experience, resulting in a strong initial showing. In fact, these hotels have performed exceptionally well across key operating metrics since their opening.

A new hotel offering in the Midscale market, a two or 3.0 has one broad market recognition for its stylish design as well as a tourist premier experience, resulting in a strong initial showing.

In fact, these hotels have performed exceptionally well across key operating metrics since their openings.

In their fourth week of operation, average OCC reached 78.8 percent, while RASPAR surpassed RMB340.

And our fourth week of operation average OCC reached at 78.8%, while Revpar surpassed RMB 340.

We believe a Tour Light 3.0 is well-positioned to meet young business travellers' demands for high-quality accommodation experiences while capturing the opportunities arising from property upgrades in core business districts.

We believe it's more like 3.0 is well positioned to meet you on business travelers demand for high quality accommodation experiences while capturing the opportunities are rising from property upgrades in core business districts moving.

Moving forward, we anticipate it will rapidly grow to scale.

Moving forward, we anticipate it will rapidly grow to scale.

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On November 11, we will officially launch the new mid-to-high-end flagship product, Yanduo 4.0, to the market.

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The 4.0 version is inspired by the village of Yaduo and creates a relaxing atmosphere for the user to relax naturally.

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Moreover, we remain dedicated to product innovation to better meet our customers' evolving demands.

Moreover, we remain dedicated to product innovation to better meet our customers' evolving demands.

On November the 11th, we officially launched our brand new upper mid-scale flagship product, Attor 4.0 with Nature. Inspired by Yaddo Village, this product revolves around the idea of natural tranquility, providing customers with immersive experiences infused with contentment and relaxation.

On November the 11th we officially launched our breath, new upper mid scale flagship product <unk> 4.0 with nature.

Aspired by yard or village this product to revolves around the idea of natural tranquility, providing customers with immersive experiences infused with contentment and relaxation.

The Yaduo 4.0 farm uses the Yaduo old tea tree as a symbol of the origin of the brand, bringing nature and quiet back to the city.

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The open-air area is designed for all-new seats and meeting rooms. It is very good for the guests to be able to have a meeting with the guests outside of the office.

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Elegantly outfitted with images of the brand's distinctive hallmark, Yaduo Village's T-Tree, a tool 4.0's lobby is specially designed to reintroduce nature and serenity into urban settings.

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Elegantly outfitted with images after brands distinctive hallmark yard dwell villages tea tree a tool a full point zero lobby is specially designed to reintroduce nature and serenity into urban settings.

Its new chatting room offers a practical, functional open area to work and socialize beyond accommodation.

It's new chatting room offers a practical functional open area to work and socialize beyond accommodations.

In addition, we have made comprehensive improvements to the operating standards and hardware facilities of the ADORE 4.0.

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At the same time, we are cooperating with two small and luxury brands. Through a sense of quality, we can create a comfortable luxury system.

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In the Hanchu gym, we have equipped the world's top brand B-Quad sports equipment.

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to provide users with safer, smoother, and more efficient sports equipment.

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Additionally, we have fully upgraded a tool 4.0 service standards, amenities, and facilities.

Additionally, we have fully upgraded.

Tore 4.0 service standards amenities and facilities.

In our Atour 4.0 hotels, we added a special breakfast area providing more diverse options for an exceptionally nutritious and healthy breakfast with carefully selected high-quality ingredients such as non-GMO soybeans from northeast China, millet from Miji County on the lowest plateau, and many other fresh components.

A tour full point zero hotels, we added a special breakfast area, providing more diverse options for an exceptionally nutritious and healthy breakfast with carefully selected high quality ingredients, such as non GMO soybeans from northeast China mill It from the mid <unk>.

On the lowest plateau and many other fresh components.

Furthermore, we will cooperate with two niche luxury bathing brands to create a comforting experience through their bath products' luxurious textures and sense.

Furthermore, we will cooperate with two niche luxury basing brands to create a comforting experience through their bath products luxurious textures and sense.

We also outfitted our gym with equipment from Precorp, one of the world's top exercise facility brands, to provide our customers a safer and more effective exercise experience in our well-appointed fitness facility.

We also outfitted our gym with equipment from pre court one of the worlds top exercised facility brands to provide our customers a safer and more effective exercise of experience and our well appointed fitness facilities.

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At the same time, we use the most representative deep sleep series products of the Asian planet in the living room. In terms of support, wrapping and temperature, it is perfectly balanced. It only allows users to have a comfortable deep sleep experience.

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Beyond the enhanced public area design and service standards, we added an innovative, exclusive deep sleep floor to our Atour 4.0 hotels.

Beyond the enhanced public carrier design and the service standards, we added an innovative exclusive deep sleep floor two hour a tour a 4.0 hotels.

This debut concept features stylishly designed corridors lit with a special lighting guidance system as well as our SAF branded fragrance permeating the entire floor to create a serene atmosphere.

This debuted concept features stylishly design corridor slit with a special lighting guidance system as well as our soft branded fragrance permitting the entire floor to create a serene atmosphere.

Each room on the floor is equipped with a stepless dimming system, one-click to sleep smart light controls, and enhanced sound insulation, delivering the ultimate in serenity for optimal sleep.

Each room on the floor is equipped with a surplus gaming system, one click to sleep smart light controls and enhanced sound insulation delivering the ultimate in serenity for optimal sleep. Meanwhile, we provide sick nature of products from a tour of planets deep sleep series in.

Meanwhile, we provide signature products from Atul Planet's Deep Sleep Series in each room to create a perfect balance among support, envelopment, and pleasant temperature control, further ensuring users' relaxing sleep experience.

Each room to create a perfect balance amongst support and development and pleasant temperature control further ensuring users relapsing sleep experience.

Yaddo 4.0's product innovation represents our unwavering pursuit of the ultimate accommodation experience.

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will also lead to the upgrade of high-end hotels and further boost Asia's lead in the mid-to-high-end market.

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In short, the product innovation we have integrated throughout Atour 4.0 is a testament to our relentless pursuit of providing the ultimate accommodation experience.

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In short the product innovation, we have integrated throughout a 12 4.0 is a testament to our relentless pursuit of providing the ultimate accommodation experience.

We are confident that Atul 4.0 will set a new industry benchmark for customer experience in the upper mid-scale market, propelling industry development and further solidifying Atul's market-leading competitiveness.

We're confident that that's a tour a 4.0 will set a new industry benchmark for customer experience and the upper mid scale market propelling industry developments and a further solidifying a towards market leading competitiveness.

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We gradually integrated hotel accommodation, retail, catering, culture, art, sports, and other

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The brand fame of A-car continues to grow and brings a rapid expansion of the membership scale.

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Even on September 30th, A-card's total number of registered members exceeded 54 million.

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Moving now to our prime memberships.

Through our persistent efforts to upgrade our membership services and exclusive privileges, our ACARD membership program continues to provide outstanding value for our customers.

Several of our persistent efforts to upgrade our membership services and exclusive privileges. Our a card membership program continues to provide outstanding value for our customers.

we have progressively expanded our membership network to include hospitality, retail, dining, culture, art, sports, and various other premium benefits.

We have progressively expanded our membership network to include hospitality retail tiny couch her.

Art sports and various other premium benefits.

Consequently, our ACARD membership has gained significant recognition and popularity, resulting in substantial growth of our member base.

Consequently, our <unk> card membership has gained significant recognition and popularity, resulting in substantial growth of our member base.

As of the end of September , the total number of individuals who have enrolled in our A-card membership program exceeded 54 million.

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Total number of individuals who have enrolled in our <unk> card membership program exceeded 54 million.

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In October , as a partner of Beijing Marathon, YADO provided a series of exclusive rights for YADO members, including a North Horse 10-way pass, exclusive breakfast, energy supplements, and other special meals.

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In the future, we will continue to explore and build Asian member ecosystems through brand and business cooperation.

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We are continuously exploring opportunities for cross-industry collaboration to enhance ACARDS value perception among our members.

We are continuously exploring opportunities for cross industry collaboration to enhance a cards value perception among our members in October as an official partner of the Beijing Marathon.

In October , as an official partner of the Beijing Marathon, Atur extended a series of proprietary rights and benefits to our members, including direct participant access to the Beijing Marathon and an array of value-added services, such as special breakfasts and energy supply packs.

Or extend it a series of proprietary rights and the benefits to our members.

Clothing director participants access to the Beijing Marathon and an array of value added services, such as a special breakfasts and energy supply packs.

Moving forward, we will continue to broaden our membership benefits and cover more diverse vertical interests through cross-industry exploration, developing more opportunities while building up our membership ecosystem.

Going forward, we will continue to broaden our membership benefits and to cover more diverse vertical interests through cross industry exploration developing more opportunities, while putting up our membership ecosystem.

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to better meet the needs of the members to grow day by day and to create a unique accommodation experience for users.

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In addition, we also continued to advance our A-plus service offerings to better meet our A-card customers' ever-growing and diversifying demands and ensure a unique, memorable experience during their stays at ATOUR.

In addition, we also continued to advance our <unk> plus service offerings to better meet our card customers ever growing and diversifying the mass and ensure a unique memorable experience during their stays at war.

Our signature deep sleep experience is top of mind for many ACARD members and our service offerings for achieving deep sleep such as pillow selection and good night milk have witnessed high levels of demand.

Our signature deep sleep experience is top of mind for many a card members and our service offerings for achieving deep sleep, such as pillow selection and good night milk has witnessed a high levels of demand.

Our wide selection of high-quality offerings effectively enhanced the users' recognition and stickiness, significantly boosting the overall usage rate of our A-plus services since the beginning of the year.

Our wide selection of high quality offerings effectively enhance the users' recognition and stickiness significantly boosting their overall the overall usage rate of our eight plus services since the beginning of the year.

At the same time, our core freedom channels are still effective.

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CIS is still stable at 62.5%

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At the same time, our direct sales channels remained effective and strong, even during the peak summer season for leisure travel. Room nights sold through our CRS remained stable, reaching 62.5% in the third quarter.

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At the same time, our direct sales channels remain effective and strong even during the peak summer season for leisure travel room nights sold through our Crs remained stable, reaching 62, 5% in the third quarter.

Resilience in both individual and corporate membership channels continued to propel the sustainable growth of our occupancy rate.

Resilience in both individual and corporate membership channels continued to propel the sustainable growth of our occupancy rate.

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In this quarter, our retail business continues to gain breakthroughs. The overall GNV will create a new wave, reaching 3.02 billion coins. The?? will increase by 2.92%.

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The sales growth in the online market has increased. The overall ratio of the GNV has increased to 80%. The double-11 purchase season just ended.

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to an increase of more than 60 percent from last year.

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This year's 618 also has more than 140% increase.

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Now, I'd like to move on to our scenario-based retail business.

Now I'd like to move onto our scenario based our retail business.

We achieved another strong quarter with total GMV reaching a record high of RMB 302 million, increasing significantly by 292% year over year.

We achieved another strong quarter with total G. M D, reaching a record high of RMB $302 million, increasing significantly by 292% year over year.

online sales in particular sort, contributing approximately 80 percent of our total GMB.

Online sales in particular sort contributing approximately 80% of our total GMB.

Our retail business also delivered a remarkable performance during the recently concluded Double Eleven Shopping Festival, as we topped the Pillow sales chart across various third-party e-commerce platforms.

Our retail business also delivered a remarkable performance during the recently concluded double 11 shopping festival.

As we talked the pillow sales chart across various third party e-commerce platforms.

Double-eleventh GMB across third-party online platforms exceeded RMB $250 million, an increase of over 600 percent compared with the same period last year.

February 11th G. M D across third party online platforms exceeded RMB $250 million, an increase of over 600% compared with the same period last year.

and an increase of more than 140 percent from this year's June 18th shopping festival.

And an increase of more than 140% from this year's June 18th shopping Festival. This.

This impressive performance clearly reflects a tour planet's continuously strengthening brand awareness and robust growth potential.

This impressive performance clearly reflects a tour of planets continuously strengthening brand awareness and robust growth potential.

We will continue to dig into the needs of our users through the real feedback we receive from our users. We will continue to promote long-term sales.

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to help us achieve the development of more products.

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The Yaduo Star-Sleeping Pro has achieved great success since March of this year. The sales of the Yaduo Star-Sleeping Pro has exceeded $800,000.

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In this episode, we will talk about the products that are easy to handle and are easy to handle. In September , we will talk about the products that are easy to handle and are easy to handle.

Thanks, as it goes up to that.

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It has done a good job of testing the high-quality products of Yaduo.

You'll need.

Go China turnkey economy.

We have been consistently promoting innovation across our scenario-based retail business by identifying and exploring our users' evolving demands through their real feedback.

We have been consistently promoting innovation across our scenario based retail business by identifying and exploring our users evolving demands through their real feedback.

Recently, we successfully established an efficient product development mechanism which has enabled us to roll out numerous blockbuster products. Our Deep Sleep Pillow Pro has enjoyed great success since its launch in March this year, with total sales volume exceeding 800,000 units as of November 11.

Recently, we successfully established that efficient product development mechanism, which has enabled us to rollout numerous blockbuster products. Our deep sleep Hello Pro has enjoyed great success since its launch in March this year with total sales volume exceeding.

800000 units as of November 11th.

Moreover, our deep sleep temperature control quilt, which is designed to envelop users in a snug and tranquil environment with its advanced temperature control features, recorded an outstanding GMB of over RMB 10 million in September . This remarkable achievement serves as a compelling validation of our outstanding product development capabilities.

Moreover, our deep sleep temperature control quilt, which is designed to envelop users in our snack and the tranquil environment, whether it's advanced of temperature controlled features.

Corded at outstanding G. M D of over RMB 10 million in September. This remarkable achievement serves as a compelling validation of our outstanding product development capabilities.

She then I'm sure you are looking at future.

The development of the retail industry not only comes from innovative physical products, but also comes from the high-tech purchase experience provided by our users.

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From the speed limit to the speed limit, we have been actively developing the core strategy of China's experience.

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Beyond our products themselves, exceptional customer experience is the cornerstone of a tour as a leading lifestyle brand. Our retail business development and success are not only driven by our innovative deep sleep series products, but also by the high quality shopping experience we provide to our customers.

Beyond our products themselves exceptional customer experience is the cornerstone of a tour as a leading lifestyle brand our retail business development and success are not only driven by our innovative deep sleep series products, but also by the high.

Quality shopping experience, we provide to our customers.

Our Atua Planet flagship stores have garnered five star ratings in terms of customer experience on both Douyin and T-Mall, significantly outperforming our industry peers.

Our tour planet flagship stores have garnered five star ratings in terms of customer experience on both L. E N T mall significantly outperforming our industry peers.

From accommodation to our retail business, we have been proactively implementing our Chinese experience strategy to great effect, further solidifying our brand recognition and propelling our sustainable and quality growth.

Accommodation to our retail business, we have been proactively implementing our Chinese experience strategy to great effect further solidifying our brand recognition and propelling our sustainable and quality growth.

Finally, in October of this year, we went back to Yunnan to visit Yaduosun and started the journey of Yaduosun. The spirit of Yaduosun has been guiding us.

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We, in 2018, help the Yaduo Village to establish tea and professional cooperation.

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through the innovation and support of companies, cooperatives, and tea farmers.

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for the local villagers to provide stable income and resources. The Yado Village of Julia is in full swing at the end of 2019. End.

It's only for me and people want to do the full rollout here.

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Due to our in our opinion.

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We hope that the tea garden in Yaduo Village not only can help local people to achieve their local goals.

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We can also make positive contributions to the ecological construction and environmental protection of Yunnan.

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Last but not least, we embarked upon a journey to rediscover Atul's original aspirations in October and returned to Rih-Nan province to revisit Yaduo Village.

Last but not least we embarked upon a journey to rediscover it towards our original aspirations in October and have returned to inland provinces to revisit Yeattaw village.

Yaduo Village's spirit has always been our guiding light, inspiring our commitment to creating an intimate ambience where people can warmly connect.

Yeah, the old vintages spirit has always been our guiding light inspiring our commitment to creating an intimate ambiance where people can warmly connect.

In 2018, we helped the village to form a specialized T-cooperative, adopting an innovative model to encourage full cooperation among enterprises, V-cooperative, and T-farmers.

In 2018, we help to the village to form a specialized T cooperative adopting an innovative model to encourage full cooperation among enterprises, we cooperated and T farmers.

This initiative has provided a stable income channel for local villagers ever since and empowered Yaduo Village to eradicate poverty village-wide as of the end of 2019.

This initiative has provided a stable income channel for local villagers ever since and empowered yellow village to eradicate poverty vintage wide as of the end of 2019.

As of September this year, we have increased the planting area of our three tea farms in Niujiang Prefecture to nearly 10,000 mu, a Chinese unit of area.

As of September this year, we have increased the planting area of our <unk> farms in new jumped et cetera to nearly 10000 more.

And Chinese unit of areas.

We believe the promotion of tea farms in Yaduo Village will not only help reclaim wasteland for agriculture, but can also contribute positively to renown's ecological development and environmental conservation.

We believe the promotion of tea farms in outdoor village will not only help reclaim wasteland for agriculture, but can also contributes positively to reenergize ecological development and environmental conservation.

Now, I'll turn the call over to our co-CFO, Mr. Wu Jianfeng, to discuss our financial results.

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Sudan I wouldn't even walk now I will turn the call over to our co CFO, Mr. We cancel to discuss our financial results.

Thank you, Haijun. Now I would like to present the company's financial performance for the third quarter of 2023.

Thank you hygiene now I would like to present, the company's financial performance for the third quarter of 2023.

Our net revenues for the third quarter of 2023 grew by 93.1% year-over-year and 18.4% quarter-over-quarter to RMB 1,294 million.

Our net revenues for the third quarter of 2033 grew by 93, 1% year over year, and 18.4% quarter over quarter to RMB 1290 $4 million.

The strong increase in the third quarter was driven by the robot growth in both our hotel and scenario-based retail business.

The strong increase in the third quarter whats driven by the robust growth in both our hotel and narrow base of retail businesses.

Revenues from our monetized hotels for the third quarter of 2023 will be 7801 million.

Revenue was thrown out monetize the hotels for the third quarter of 2023 were RMB 781 million about.

up by 82.9% year over year and 24.7% quarter over quarter.

About 82, 9% year over year, and 24, 7% quarter over quarter.

These increases were primarily driven by the ongoing expansion of our hotel network and the increase in rent power.

These increases were primarily driven by the ongoing expansion of our hotel network and the increase in Revpar.

The total number of managerized hotels increased to 1,080 as of September 30, 2023, up by 27.5% year over year and 7.9% quarter over quarter.

The total number of <unk> hotels increased to 1080 as of September 32003.

By 27, 5% year over year, and 7.9% quarter over quarter, while Revpar was about 2019 as devil and recover to RMB 418 for the third quarter up 10 to 23 from RMB 317.

while Railpark surpassed 2019's level and recovered to RMB418 for the third quarter of 2023 from RMB317 for the same period of 2022.

Periods of 2022.

Revenues contributed by our lease totals for the third quarter of 2023 for RMB 238 million, representing an increase of 49.3% year-over-year and 8.5% quarter-over-quarter.

Revenue was contributed by Audi hotels for the third quarter up to anything here three were RMB $238 million, representing an increase of 49, 3% year over year, and eight 5% quarter over quarter.

These increases were primarily due to the growth of red part.

These increases were primarily due to the growth of Revpar.

Red Power of all these hotels surpassed 2019's level and recovered to RMB571 for the third quarter of 2023 from RMB384 for the same period of 2022.

Revpar of all these hotels, so part 2019 level and recover the two RMB 571 for the third quarter of 283 from RMB 384 for the same period of 2022.

Revenues from retail and others for the third quarter of 2023 increased by 229.1% year-over-year and 11.4% quarter-over-quarter to MB 275 minutes.

Revenues for all retail and other for the third quarter of 2023 increased by 229, 1% year over year, and 11, 4% quarter over quarter to RMB $275 million.

with narrow-based retail revenues growing by 291.7% year-over-year and 11.1% quarter-over-quarter to RMB 235 million.

With narrow base of retail revenues growing by 291, 7% year over year, and 11, 1% quarter over quarter to RMB 200.

$35 million.

These increases were attributable to our ongoing efforts to address evolving customer needs as well as our efficient product development mechanism, which enabled us to consistently launch new products which are well received by customers.

These increases were attributable to our ongoing.

Efforts to address evolving customer needs as well as our efficient product development mckenney them, which enabled us to consistently.

The product that which are well received by customers.

In addition, we continue to expand our customer base and enhance our brand recognition through a combination of various online and offline distribution channels.

In addition, we continued to expand our customer base and enhance our brand recognition through a combination of various online and offline distribution channels.

Now, let's move to costs and expenses.

Our hotel operating costs for the third quarter of 2023 increased by 58.4% year-over-year to RMB 617 million.

Our hotel operating costs for the third quarter of 2023 increased by 58, 4% year over year to RMB $670 million.

mainly due to the increase in variable costs such as supply chain costs associated with the ongoing expansion of our hotel network.

Mainly due to the increase in variable costs.

Supply chain costs.

L shaped it with the ongoing expansion of our hotel network.

Hotel operating costs accounted for 60.5% of total hotel revenues for the third quarter of 2023, compared with 66.3% for the same period of 2022.

Hotel operating costs accounted for 65% of total hotel revenues.

Third quarter of 2023, compared with 56, 3% for the same period of 2022.

The decrease was due to the robust growth of Redpox and the economics of Gale brought by our rapid network expansion.

The decrease was due to the robust growth of wrap up and the economics of scale brought by our rapid network expansion.

Other operating costs for the third quarter of 2023 were R&D 131 million, representing an increase of 190.8% year over year.

Other operating costs for the third quarter of 2023 were RMB 131 million, representing an increase of 198% year over year.

driven by increased costs associated with the rapid growth of our narrow-based retail business.

Driven by increased costs associated associated with the rapid growth of our narrow base of the retail business.

Other operating costs accounted for 47.6% of retail revenues and others for the third quarter of 2023.

Other operating costs accounted for 47, 6% of retail revenues and others for the third quarter of 2023.

compelled with 53.8% for the same period of 2022.

With 53, 8% for same period of 2022.

This decrease was attributable to improved retail business profitability as a result of the increasing contribution from higher margin online distribution channels.

The decrease was attributable to improve the retail business profitability as a result of the increasing contribution from higher margin online distribution channels.

Selling and marketing expenses for the third quarter of 2023 increased by 269.3% year-over-year to RMB 112 million.

Selling and marketing expenses for the third quarter of 2023 increased by 269, 3% year over year to RMB $112 million.

setting and marketing expenses accounted for 8.7% of the net revenues for the third quarter of 2023, compared with 4.5% for the same period of 2022.

Selling and marketing expenses accounted for eight 7% of net revenue for the third quarter of 2023 compared with four 5% for the same periods of 2022.

The year-over-year increase was primarily attributable to the rapid growth of this narrow-based retail business, which was particularly driven by online channels.

The year over year increase was primarily attributable to the rapid growth of the scenario based the retail business, which was particularly driven by omni channel.

Journal and administrative expenses for the third quarter of 2023 will be 79 million.

General and administrative expenses for the <unk>.

Third quarter of 2023 were RMB, seven 9 million extra.

excluding share-based compensation expenses of RMB9 million, adjusted general and administrative expenses increased by 53.3% year-over-year to RMB17 million for the third quarter of 2020.

Excluding share based compensation expenses of RMB 9 million.

Adjusted General and administrative expenses increased by 53, 3% year over year to RMB 70 million.

For the third quarter of 2023.

Adjusted general and administrative expenses accounted for 5.4% of net revenues for the third quarter of 2023, compared with 6.8% for the same period of 2022.

Adjusted General and administrative expenses accounted for five 4% of net revenues for the third.

Quarter of $10 93, compared with six 8% for the same period of 2022.

The decrease was due to the improvement of our management efficiency and operating leverage.

This decrease was due to the improvement of our management efficiency and operating leverage.

Our technology and development expenses for the third quarter of 2023 will be 20 million.

Our technology and development expenses for the third quarter of 2023 were RMB 20 million.

Compiled with RMB16 minimum for a 10-period option 2020 too.

Compared with RMB 16 million for same period of <unk> 92.

Technology and development expenses accounted for 1.6% of net revenues for the third quarter of 2023, compared with 2.5% for the same period of 2022.

Technology and development expenses accounted for one 6% of the net.

Net revenues for the further opportunity in Q3 compared with two 5% for same period of 2022.

We will continue to improve our technology and development capability and invest in comprehensive digital infrastructure to facilitate our long-term sustainable goals.

We will continue to improve our technology and development capability and invest in comprehensive digital is that structure to facilitate our long term sustainable growth.

Adjusted EBITDA for the third quarter of 2023 was RMB 380 million, up by 122.4% year-over-year. Adjusted EBITDA margin for the third quarter of 2023 was...

Adjusted EBITDA for the third quarter of 2023 was RMB $380 million up by 122, 4% year over year.

Adjusted EBITDA margin for the third quarter of 2023.

Nine 4%.

with an increase of 4 percentage points year over year.

With an increase of four percentage points year over year.

adjusted net income for the third quarter increased by 144.7% year-over-year to RMB272 million.

Adjusted net income for the third quarter increased by 144, 7% year over year to RMB 272 million.

Adjusted net profit margin for the third quarter of 2023 was 21.0%, with an increase of 4 percentage points year-over-year.

Adjusted net profit margin for the third quarter of 2023, what 'twenty.

<unk>, 1.0% with an increase of four percentage points year over year.

The improved group overall net margin was primarily driven by the increase in gross profit margin in both our hotel and scenario-based retail businesses, along with our improved operating

They improve the group's overall net margin was primarily driven by the increase in gross profit margin in both our hotel and narrow base the retail businesses.

Along with our improved operating leverage.

Operating cash inflow for the third quarter of 2023 was RMB 543 million.

Operating cash inflow for the third quarter of 2023 was RMB 543 million investing cash outflow and financing cash outflow for the third quarter.

Investing cash outflow and financing cash outflow for the third quarter of 2023 were RMB779 million and RMB98 million respectively.

Order of 2023, while RMB, 717, 9 million and RMB $98 million respectively.

Notably, we have maintained a healthy cash position with stable growth momentum. As of September 30, 2023, our cash and cash equivalents totaled RMB 2.2 billion. Together with bank-structured deposits, we have cash and short-term investments totaling RMB 3.0 billion.

Notably we have maintained.

Healthy cash position with stable growth momentum as of September 32023, our cash and cash equivalents totaled RMB two 2 billion.

Together with bank structure the deposits, we have cash and short term investments totaled RMB 3.0 opinion.

That concludes our financial highlights for the third quarter of 2023, with that open for Q&A.

That concludes our financial highlights for the third quarter up 10 to 33 with that let's open for Q&A.

Thank you sir. As a reminder to ask a question you'll need to press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 and 1 again. Once again please press star 1 and 1 on your telephone and wait for your name to be announced.

Thank you so as a reminder to ask a question you'll need to press star one and one on your telephone and wait for your name to be announced can we go to your question. Please press star one and one again once again, please press star one and one on your telephone and wait for your name to be announced.

For the benefit of all your participants on today's call, if you raise your question in Chinese, please immediately repeat your question in English. Please submit your questions to one at a time. If you wish to have any follow-up questions, please rejoin the queue. Thank you. We are now going to proceed with our first.

For the benefit of all your participants on today's call. If you raise your question in Chinese. Please immediately repeat your question in English. Please limit your questions to one at a time if you wish to have any follow up questions. Please rejoin the queue. Thank you.

We are now going to proceed with our first question.

Other questions come from the line of Linda Ling from Citi, please ask your question.

Our question comes from the line of Lee Yelling from Citi. Please ask your question.

Thank you. Hello, everyone. I'm Lydia from Huaqi. First of all, I'd like to thank you for giving me the opportunity to ask questions. And I'd also like to congratulate the company for achieving a very bright result in the third quarter, whether it's our hotel business or long-term retail sales. I'd also like to ask, based on the current trend from the fourth quarter to the present, has there been any changes to the company's opening of stores last year, including RAPPA and revenue guidance? It's now the end of the year, so I'd also like to know how the company sees the development trend for next year. Do you have any preliminary guidance that you can share with us? Yes, of course. I'd like to start by saying that the company has been very successful in the past three quarters. We've had a lot of success in the past three quarters. But after this year's closing down, we've had bad results. How do you see the company's development trend for next year? Do you have any initial guidance you can share with us?

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Hi, management. I'm from our city. Thanks for taking my questions. First, the congratulations. I'm very sorry. The results for the first quarter, including the hotel business and also the retail business.

Oh Wow.

Oh, Hi management MDA daily from Citi. Thanks for taking my questions. Firstly, congratulations I'm very sorry that results for the quarter, including the hotel business and also whatever retail business.

So we want to check with the management database on the fourth quarter to date trend. So do you actually have any changes in your four-year guidance in terms of the openings, like the red part, as well as for the top line and the bottom line guidance? And also, as we are into the end of this year, also want to check with the company if you have any guidance for growth outlook for next year. Do you have any, like the initial expectation to share with us? Thank you.

Wanted to chat with the management that based on the fourth quarter to date trend.

Have any changes in your full year guidance in terms of your openings like the revpar as well as for the top line and the bottom line guidance and also as we go into the end of this year's total walnuts checked with the company. If you have any guidance or outlook for next year do you have any like the initial expectation to show with that thank you.

Yeah.

So that area well every dining table wouldn't here.

First of all, regarding the annual power generation, as of September 30th, we have generated 189 power generations this year. Looking at the trend, the number is increasing every quarter. We are confident that the power generation in the fourth quarter can be accelerated further. So our goal of maintaining 280 power generations throughout the year remains the same.

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Thank you, Lydia. Let me take your question. As of September the 30th, we have opened 189 hotels cumulatively this year. The trend shows a quarterly increase, and we are pretty confident that the new hotel openings will accelerate further in the fourth quarter.

Thank you Alicia let me take your question.

September 30, we have opened 118 nine hotels cumulatively. This year the trend shows our quarterly increase and we're pretty confident that the new hotel openings will accelerate further in the fourth quarter.

And that's why we would like to maintain a target of 280 new hotel openings for the full year.

And that's why we would like to maintain a target of 280, new hotel openings for the full year.

The second question is about RAP-PAR. RAP-PAR talks with everyone from 113 to 117 in the last quarter of this year.

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And secondly, in terms of the RAVPAR, well, in our last earnings call, we had shared that our full-year RAVPAR recovery rate was to be in the range of 113 percent to 117 percent.

And secondly in terms of the Revpar well in our last earnings call. We had shared that our full year revpar recovery rate was to be in the range of 113% to 117%.

Well, now that seeing the overall progress till now is including the performance during the summer and the National Day holidays all remained solid and was in line with our expectations. So we are maintaining the full year guidance unchanged still within the range of 113 percent to 117 percent.

Now Thats T&D overall progress till now is including the performance during the summer and a national day holidays. All remained solid and was in line with our expectations. So we are maintaining our full year guidance unchanged still within the range of 113% to 117%.

Thirdly, on income, our retail business continues to break through and exceed expectations. So our annual income for this year will increase to around 4.4 billion RMB, an increase of more than 90%.

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and thirdly in terms of revenue as we have achieved many breakthroughs in our retail business.

And thirdly in terms of revenue as we have achieved many breakthroughs in our retail business.

The retail business revenue has continuously exceeded our expectations. Therefore, we will revise up our full-year revenue guidance to around $4.4 billion, with a year-on-year growth exceeding 90 percent.

The retail business revenue has continuously exceeded our expectations and therefore, we will revise up our full year revenue guidance to around $4 4 billion with a year on year growth exceeding 90%.

Last but not least, regarding the guidance for next year, we will keep a steady pace of 2025 with 2,000 good power stations.

Now, let's say whole way of many industry qiagen normally onto our RT, one yen down $10 at the end of DSO, what bill treated.

Regarding guidance services, we plan to introduce different service models for our customers. As I mentioned, we want to introduce ToneMeter.

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Regarding guidance for the next year.

New hotel openings will progress steadily in line with the pace to achieve our goal of opening 2,000 premier hotels by 2025. And the rough part target for next year is to be with some moderate growth based upon this year's fundamental value. And as we are in the middle of internal budgeting for next year, 2024, we would like to share more color on the next quarter earnings call.

New hotel openings will progress steadily in line with the pace to achieve our goal of opening 2000 Premier hotels by 2025, and the Revpar target for next year is to be with some moderate growth based upon this year's fundamental value.

And as we are in the middle of your internal budgeting for next year 2024, we would like to share more color on the next quarter earnings call. Susan. Thank you. Thank you Lydia operator, please invite next question.

Thank you. Thank you, Lydia. Operator, please invite next question.

Yeah.

Thank you we are not going to take our next question.

And the questions come from the line of Cingeline from CICC. Please ask a question. The line is open.

And the question is come from the line of engineered from the ICC. Please ask your question. Your line is open.

Thank you, Guan Yiceng. Congratulations again on your record-breaking performance. After watching the YADUO 4.0 launch, we can feel that you have made a breakthrough in terms of overall style and quality. So how do we control the single-room KPEX at 14.5 million in this situation? And can you share with us the expectations of RAPA and single-channel models after the launch of YADUO 4.0?

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Actually I don't see any kind of a hotel or a powerful event in Washington D C.

So, my question is about ATOR 4.0, which we launched recently. I feel that there's really a big improvement in overall style and quality compared with previous versions. So, how can we control the CAPEX at $145,000 per room while achieving this? And could you please share with us your expectation on its future RFPA and new unit economics, including payback period? Thanks.

So my question is about a two or a full point their ROE, which we launched recently I say that is really big and preventing overall styling and quality compared with previous versions. So how can we control the tray packs at mm 145000 per room, while shooting this and could you. Please share with us your expectation of ice futures.

In the U S economy, including pay back period.

Okay, thank you. I'll answer this question. The Asia 4.0 concept is that our location is different from traditional commercial hotels. So we used a lot of natural elements. We hope to create a relaxed and leisurely atmosphere for business trips and traveling guests.

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Susan.

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Well, thank you very much, Sujie, for your questions. Let me answer that.

Well. Thank you very much to CFO questions, let me answer that.

A tour of 4.0 with nature distinguishes itself from our traditional business hotels or of others. It incorporates many natural, native elements to create a sense of natural tranquility. And this provides a relaxation and leisurely ambience for our guests who are on the business trips or if they are constantly on the go.

A two 4.0 with nature distinguishes itself from our traditional business hotels or our fathers. It incorporates many natural native elements.

To create a sense of natural tranquility and this provides a relaxation and leisure the ambience for our guests who are on the business trips or if there are constantly on the go.

We expect a mature hotel like 4.0. Roller Park's target is 400 yuan.

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In the case of the full upgrade of the design style of the Ruan Yingzhuang, according to the 140 standard rooms, the price of the unit is 14.5 million yuan.

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For the 4.0 product, we have used a large proportion of model design. On the one hand, it is better to ensure that the project has a good quality interaction. At the same time, we have shortened the time and supply period.

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For a tour, a tour 4.0 hotel, we would anticipate a rough part target of 400 RMB.

For our mature 12, 4.0 hotel, we would anticipate our revpar target of 400 RMB at.

At the same time, with breakthroughs in design styles and the upgrades in both facilities and amenities, the CAPACs per room would be around 145,000 RMB based upon a total number of 140 rooms.

At the same time with breakthroughs and design styles and the upgrades in both facilities and amenities that capex per room would be around 145000 RMB based upon total number of 440 rooms.

A Tool 4.0 adopts a large-scale modular design, which not only can help to better ensure the project quality, it also helps us to reduce the material and construction period.

Two a 4.0 adults a large scale modular design, which not only can help to better ensure the project quality. It also helps us to reduce the material and construction period.

The investment return period for Yaduo 4.0 is about 3.5 years. This return period includes the renovation period. This will be further extended than the previous 3.5 version. It is expected to lead again in the mid-to-high-end market. Thank you.

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In general, the investment return period for a Tour of 4.0, while including the renovation period, is estimated to be three year and a half. That is shorter than our previous version, 3.5. We expect a Tour of 4.0 will continue to enhance our competitiveness in the upper-mid-scale hotel market and also lead our long-term growth. Thank you.

In general the investment return period for a 12 4.0, while including the renovation period is estimated to be three year and a half that is shorter than our previous version three five we expect that 240 will continue to enhance our competitiveness in the <unk>.

Upper mid scale hotel market and also read our long term growth. Thank you.

Thank you, Sijie. Let's have our next question.

Thank you for that.

Let's have our next question.

Thank you. We are now going to proceed with our next question.

Thank you.

We are not going to proceed with our next question.

And the questions come from the line of Ronald Lang from Bank of America. Please ask your question.

And the question is come from the line of Ronald Leung from Bank of America. Please ask your question.

Good evening, Managing Director. Thank you for giving me the opportunity to ask questions. And congratulations to the Managing Director for achieving very good results this quarter.

Hey, Bonnie.

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You see it.

The performance of the retail business in the third quarter continues to exceed expectations, and there was also another breakthrough during W11. Could you please provide insights into the company's future plans and growth expectations for the retail business? Thank you very much.

Uh huh.

The performance of the retail business in the third quarter as it continues to exceed expectations and there was also at other breakthrough during double 11 could you. Please provide even places to accommodate future pads and growth expectations for the retail business. Thank you very much.

OK. Thank you for your question. Let me answer it for you. So, the future of the retail business is our strategy for the next few years. The first thing is to make a prediction. We will be more focused on the distribution and distribution of our sleeping areas.

Oh, no assistant <unk> collaborate either.

No I think so you will a woman in any good.

Even though she schedule timber Suzhou Wuxi congestion Delta center to delve a sudden come on the stream endy.

Second, we will also add a method. This method is to use our observation of users and the application of technology to continue to strengthen the development and integration of products in the deep sleep field and to expand our sleep-related categories.

They are either now or whatever.

So good job on that.

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Well, thank you for your question. Well, our midterm strategy for the retail business revolves around two key approaches. The first is to do a subtraction.

Well. Thank you for your question our midterm strategy for the retail business revolves around two key approaches. The first is to do a substruction.

We aim to focus on concentrating and deepening our presence in the sleep market. And secondly, it is an addition. We are going to leverage our insights into customer behavior and the application of technology to continuously strengthen our product R&D as well as expanding our deep sleep product category.

We aim to focus on concentrating and deepening our presence in our sleep market and secondly. It is in addition, we are going to leverage our insights into customer behavior and the application of technology to continuously strengthen our product.

D as well as expanding our deep sleep product categories.

Like I just mentioned, our retail capacity is constantly increasing. From the cost-effectiveness of the first round of sales to September , we have sold tens of millions of sales per month. Our high-end product development system is constantly being verified. We will continue to promote the next generation of sales series products, sales bed.

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So I'll just embarked on future, particularly since we just hope to reopen a woman.

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Sudhakar mentioned centuries outlet center and make sure that our portal.

This also makes the users of the hotel gradually become more widely known as the consumer group. The influence of the brand in the sleep economy can be greatly increased continuously.

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Dan Jones, who do their food and what part of it.

Shelby that engine, yes, those things are that Sri minting EDW Paddington.

Sure the double teacher.

Like we have previously introduced, our retail product capabilities are continually improving, ranging from the popular deep sleep pillow that gained widespread recognition to the deep sleep temperature control quote which achieved a monthly GMB exceeding tens of millions in September .

Like we have previously introduced our retail product capabilities are continually improving ranging from the popular deep sleep pillow that gained widespread recognition to the deep sleep temperature control quote, which achieved at monthly <unk> exceeding tens of millions.

Additionally, we have other products to be launched soon, demonstrating our effectiveness of our product R&D.

Since September. Additionally, we have other products to be launched as soon demonstrating our effectiveness of our product to r&d's.

especially the robust system for that. The new product in deep sleep series, including the deep sleep mattress, which will be officially launched soon.

Especially the robust system for that new product and deep sleep series, including the deep sleep night metrics, which will be officially launched as soon the deep sleep product line continues to expand gradually extending from hotel users to a broader consumer base. This expansion has significantly increase.

The Deep Sleep product line continues to expand, gradually extending from hotel users to a broader consumer base.

This expansion has significantly increased a 12-planet brand influence within the sleep economy.

<unk> Tau planets brand influence within the sleep economy.

Our retail business has reached 235 billion RMB in revenue in the third quarter, which is a 292% increase. At the end of the Double 11 shopping festival, Yellow Planet ranked first in the sales of pillow products on various e-commerce platforms. The overall GMV of the online third-party platform exceeded 250 million RMB, which is more than six times higher than last year.

Well then things. So you will note that certainty to the showroom without all the audience. So easy I mean be told me thumbs up the passenger down by two which are.

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There'll be some bumps in that sense. It is Randy talk where the audience is maybe sheltering at home as it turns out <unk> now.

This year's 618 also has an increase of over 140%. As for the strong performance of our retail business, we expect that the revenue of this year's retail business will reach 900 million yuan, which is more than 250%.

<unk> sure that you've got a T shirt.

<unk> built here in Oklahoma.

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Our retail revenue was R&B 235 million in the third quarter, increasing significantly by approximately 292% year-over-year.

Our retail revenue was RMB $235 million.

In the third quarter, increasing significantly by approximately 292% year over year.

During the recently concluded Double Eleven shopping festival, we topped the pillow sales chart across various third-party e-commerce platforms.

During the recently concluded the double 11 shopping festival, we talked to the pillow sales chart across various third party e-commerce platforms.

The W11's GME across all third-party commerce channels have exceeded RMB 250 million, an increase of over 600 percent when compared with the same period last year, and an increase of more than 140 percent from this year's June 18th shopping festival.

The double 11, <unk> across all third party e-commerce channels have exceeded RMB $250 million, an increase of over six times, 600% when compared with the same period last year and an increase of more than 140% from this year's June 18th shopping Festival.

With all that, we expect retail revenue for this year to reach 900 million RMB, with year-on-year growth exceeding 250 percent.

Oh.

With all that we expect retail revenue for this year to reach 900 million RMB with a year on year growth exceeding 250%.

Thank you. Thank you. We can take our next question.

Thank you. Thank you we can take our next question.

Thank you. We are now going to take our next question.

Thank you we are not going to take our next question.

And the questions come from Zalanov, GWLU, from CITICS. Please ask your question, your line is open.

And the questions come from the line of Joanne you from Citigroup. Please ask your question. Your line is open.

Anything like a HA. We're sure toom Jun send with U.

Thank you Brian.

Well sure Jonathan Johnson.

I would like to ask two questions about Qingju. On the one hand, after the release of Qingju 3.0, we did see that the signing and opening up of Qingju 3.0 was very fast.

Can you do to find out what that Golar.

If only in Jerusalem, but you said, you're probably hold while mature chaconne, Belgium.

Sure, but I'm quiet well.

Do you have any more details about the current operating situation of the store and can you share them with us?

Hi, Tom and Dan does shrinking as you can imagine why they.

Sorry, we couldnt do they have to go to get critical mass that sort of thing.

In addition, will the overall ROPA impact on the company in the future with the increase in the total share of the green households? These are the two main questions. Let me translate it. Thanks, management.

Meanwhile, the Winder, Georgia state isn't good of Jacob Suen, human beings and human DNA. If you could time that you show.

Consequently, the real property.

Charles Youre down on the language.

Well find out thanks management QA from Citrix.

Tourline 3.0 version is making rapid progress on sign-in and opening. So could you tell us more about the store's current business situation?

All lines pulling or is making rapid progress on site and opening so could you tell us more about the stores, calling the business situation.

Besides, we need to bring pressure to the group's bloody well path with the increase in the propulsion of a torlite. Thanks.

We need to bring pressure to the group's plumbing, there well probably use the increase in the production of a tour light. Thanks.

Okay, thank you. I'll answer this question. As of September 30th, our new residence has signed 71 contracts. These are all 3.0 contracts. We have continued to gain the approval of our partners. There are 13 stores that have already opened. According to the two-line and above-level core business circle, the track in the mid-high-end hotel should be said to have reached the standard level.

Havasu city with Stephens.

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<unk> Jordan, our CFO to answer the question Jeff.

Rather than to identify it up he knows what that dollar billed in the future.

Thank you, Jiwei, for your question. Let me answer this one. As of the end of September , a Tour Light 3.0 has accumulated 71 fine projects, consistently gaining recognition from our franchisees. 13 hotels have been opened, primarily focusing on core business districts in higher-tier cities.

Thank you for your question, let me answer this one.

As of the end of September a tour like 3.0 has accumulated 71 find projects consistently gaining recognition from our franchisees 13 hotels have been opened primarily focusing on core business districts in higher tier cities.

These stores aim to set a benchmark for quality in the mid-scale hotel sector.

Stores aimed to set a benchmark for quality in the Midscale Hotel segment.

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Thomas <unk>.

<unk> achieved for major disorder.

ADR Golar power.

Sean Dowdy Sheepherder <unk>, yes, sure it was even a leader.

Looking at those two Allied 3.0 hotels that are currently open, they had significantly shortened ramping up period as a new product. Both ADR and RevSpar are highly competitive when compared to the other mid-scale hotels in the same business districts.

Looking at those are true alive 3.0 hotels that are currently open.

Had significantly shortened the ramping up period as our new product.

<unk> ADR and Revpar, our highly competitive when compared to the other mid scale hotels in the same business districts.

So you mean yogurt and good at our Hudson.

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Sure not sure woman cardiac <unk> syndrome.

Bulk or change your target audience.

Sure Jacob.

But we will upgrade our products and upgrade our old appliances to improve the competitiveness of our products. And we will have a lot of new appliances, and we will have a lot of new appliances, and we will continue to promote the health of our Roller Park. Our goal is to achieve a balanced growth on the basis of this year.

Johnny.

Hum.

I'm in the same year Carla.

<unk> <unk>.

A daughter Silicon how good our food returns where torture corona filled up.

It's really a lot of them don't archive.

We all know that.

Genie energy to shop.

Other than that.

And regarding the growth of the overall rev par next year, despite the structural changes and the pressures brought by the rapid expansion of new hotels and the increasing proportion of a tour light, we plan to enhance product competitiveness through product upgrades and rejuvenation of the existing hotels.

And regarding the growth of the overall Revpar next year, despite the structural changes and the pressures brought by the.

The rapid expansion of new hotels, and the increasing proportion of a tour light we plan to enhance product competitiveness through product upgrades and rejuvenation of the existing hotels. Additionally, the support for new hotels ramp up will continue aiming for a sustain.

Additionally, the support for new hotels ramp-up will continue, aiming for a sustained and healthy growth in RevPAR. The goal is to achieve moderate growth compared to this year's RevPAR as a baseline.

<unk> and healthy growth in Revpar. The goal is to achieve moderate growth compared to this year's revpar as a baseline.

Okay.

Gotcha. Thank you.

Yeah.

Thank you. As a reminder to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. Once again, it's star 1 and 1 on your telephone.

Yeah.

Thank you as a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced once again is still one and 110 aside.

We are now going to wait for a few minutes before taking the next question.

We are not going to we're not going to.

Wait for a few minutes before taking the next question.

As a reminder, to ask a question, you will need to press star 1 and 1 on your telephone.

As a reminder to ask a question you will need to press star one and one on your telephone.

That concludes the question and answer session. I would like to turn the conference back over to Alison Zhang for a near-additional closing remarks. Thank you.

That concludes our question and answer session I would like to turn the conference back over to Alison Zhang for any additional or closing remarks. Thank you.

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.

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.

Ladies and gentlemen, this concludes the conference call. Thank you for participating in our Disconnection Alliance. Thank you.

Ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect your lines. Thank you.

Okay.

Okay.

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