Atour Lifestyle Holdings Limited (ATAT) saw its stock price surge 5.04% in pre-market trading on Thursday following a series of positive announcements. The Chinese hospitality and lifestyle company reported robust first-quarter results, declared a dividend, and authorized a substantial share repurchase program.

In its Q1 2025 financial report, Atour Lifestyle Holdings showcased impressive growth. The company's net revenues increased by 29.8% year-over-year to RMB1,906 million (US$263 million). Despite a slight 5.5% decrease in net income to RMB244 million (US$34 million), the adjusted net income, which excludes share-based compensation expenses, rose by 32.3% to RMB345 million (US$48 million). This performance beat analyst expectations, with earnings per share of $0.34 surpassing the consensus estimate of $0.32.

Adding to investor optimism, Atour's Board of Directors declared a cash dividend of US$0.14 per ordinary share, or US$0.42 per American depositary share (ADS). Furthermore, the company authorized a three-year share repurchase program of up to US$400 million, signaling confidence in its financial position and commitment to enhancing shareholder value. The company stated it expects to fund the repurchases from its existing cash balance, which stood at approximately RMB3.1 billion (US$434 million) as of March 31, 2025. These shareholder-friendly moves, coupled with the strong quarterly results, appear to be the primary drivers behind the stock's significant pre-market rally.