[Management View]
Total net revenue for Q1 2025 was RMB 1,906 million, up 29.8% YoY but down 8.6% QoQ. The company opened 121 new hotels, a 24.7% YoY increase, bringing the total to 1,727 hotels. The retail business GMV reached RMB 845 million, up 70.9% YoY. Adjusted net income was RMB 345 million, up 32.3% YoY.

[Outlook]
Management raised total group net revenue growth guidance to 25%-30% YoY for FY2025 and retail business revenue growth to 50% YoY. The company aims to open 500 new hotels in 2025, targeting 2,000 premier hotels by year-end.

[Financial Performance]
Net revenue increased by 29.8% YoY but decreased by 8.6% QoQ. Adjusted EBITDA was RMB 474 million, up 33.8% YoY. Adjusted net profit margin was 18.1%, up 0.3 percentage points YoY. Cash and equivalents totaled RMB 3,146 million as of March 31, 2025.

[Q&A Highlights]
Question 1: Could you please share the performance of RevPAR since Q2 and provide outlook on RevPAR for the full year?
Answer: In Q1, RevPAR decreased by 7.2% YoY. Entering Q2, business travel recovery remains uncertain, but leisure travel demand is resilient. During the Labor Day holiday, both pricing and occupancy exceeded prior year levels. Full-year RevPAR faces considerable uncertainty due to market volatility. The company will focus on differentiated experience advantages and balanced revenue management.

Question 2: Could you please share your view on the new signings momentum and also new hotel openings for the full year of 2025?
Answer: In Q1, the company maintained positive signing momentum despite industry-wide pressure. The hotel industry offers stable cash flow returns and a robust business model. The company opened 121 hotels in Q1 and maintains its full-year opening guidance of 500 new hotels, aiming for 2,000 premier hotels by year-end.

Question 3: My question is related to the company's retail business. We saw retail business revenue growth in the first quarter was outstanding at 67% year-on-year. Previously, the company guided full year retail revenue of no less than 35% growth. I would like to ask the management about any update to the full year revenue guidance on this business and any strategic plan for retail in the coming period?
Answer: In Q1, retail business GMV grew over 70% YoY. The company is confident in the performance of upcoming product launches and major promotional campaigns. Full-year retail revenue growth forecast is raised to 50% YoY. The company will focus on enhancing product R&D, improving product quality, and consolidating supply chain strength.

Question 4: We noticed that you had just announced dividend and share buyback program. Could you share some thoughts of the overall considerations behind these initiatives?
Answer: The company remains committed to creating long-term value and rewarding shareholders. A 3-year share repurchase program totaling up to USD 400 million was announced. The annual cumulative dividend payout will be no less than 50% of the previous fiscal year's net income. The first dividend distribution totals approximately USD 58 million.

Question 5: Could you provide an update on the progression of your upscale of brands? And also, we noticed the launch of some new products across both the upper scale and also mid-scale brands. So could you elaborate more on the strategies for them?
Answer: The company adheres to a quality-first principle for upscale brands. The flagship hotel at Binhu of Shenzhen will commence operations on May 28. The Atour 3 and Atour 4 series will shape the next-generation upper mid-scale hotel portfolio. The Atour Light 3.3 version will undergo comprehensive upgrades to enhance experience, product texture, and business functions.

[Sentiment Analysis]
Analysts were generally positive, focusing on the company's strong retail growth and strategic expansion plans. Management maintained a confident and proactive tone, emphasizing quality growth and shareholder value.

[Quarterly Comparison]
| Metric | Q1 2025 | Q4 2024 | YoY Change | QoQ Change |
|-------------------------|---------------|---------------|--------------|--------------|
| Net Revenue | RMB 1,906M | RMB 2,085M | +29.8% | -8.6% |
| Adjusted Net Income | RMB 345M | RMB 510M | +32.3% | -32.4% |
| Adjusted EBITDA | RMB 474M | RMB 700M | +33.8% | -32.3% |
| Cash and Equivalents | RMB 3,146M | RMB 3,200M | N/A | -1.7% |

[Risks and Concerns]
- Market volatility and macroeconomic uncertainty affecting travel demand.
- Competitive pressures in the retail market.
- Potential challenges in maintaining high-quality growth amid rapid expansion.

[Final Takeaway]
Atour demonstrated strong performance in Q1 2025, driven by significant growth in the retail business and strategic hotel network expansion. The company raised its full-year revenue guidance, reflecting confidence in its growth trajectory. Management's focus on quality growth, shareholder value, and differentiated experiences positions Atour well for future success despite market uncertainties.